BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 531
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 531 (Frazier) - As Amended:  March 20, 2013 

          Policy Committee:                               
          TransportationVote:16-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the DMV, commencing January 1, 2015, to  
          print, upon request, the word "VETERAN" on the driver's license  
          (DL) or identification card (ID) of an armed forces veteran.   
          Specifically, this bill: 

          1)Requires DMV to issue a DL or an ID printed with "VETERAN" to  
            an applicant who presents, in a manner determine by the  
            department, a Certificate of Release or Discharge from Active  
            Duty (DD Form 214).

          2)Requires the DMV to allow an applicant to present verification  
            that they have received a DD Form 214 from the county veterans  
            service officer.

          3)Directs DMV to charge an additional unspecified fee to an  
            applicant for a DL or ID requesting the veteran designation  
            per (1).

          4)Requires DMV to forward $1 of the additional fee to the  
            Controller for deposit in the Veterans Service Officer Fund  
            (VSOF), to be used, upon appropriation, for support of county  
            veterans' service offices.

           FISCAL EFFECT  

          1)One-time special fund costs of around $750,000 to DMV for  
            computer programming and to incorporate the required design  
            changes as part of the next contract for the DL and ID.   
            (Motor Vehicle Account (MVA).) 









                                                                  AB 531
                                                                  Page  2

          2)Annual costs of approximately $950,000-equivalent to 16  
            employees statewide-to DMV, for field office operations, to  
            collect information and applications in field offices and to  
            investigate status of applicant's applying for veteran's  
            insignia. (MVA.) 

          3)Annual fee revenue to DMV of an unknown amount but presumably  
            sufficient to recover DMV's one-time costs and support the  
            ongoing costs. (MVA.) The DMV estimates about 285,000 veterans  
            would apply annually for this service over the first several  
            years, and presumes a $5 fee would be sufficient to cover its  
            costs.

          4)Based on DMV assumption in (3), annual fee revenue would be  
            $285,000 for support of county veterans' service offices.

           COMMENTS  

           1)Purpose  .  The veterans groups supporting this bill contend it  
            allow veterans seeking benefits offered by private parties,  
            such as department stores and service stations, to easily and  
            accurately verify their status as veterans. The sponsors also  
            contend DLs and IDs identifying individuals as veterans will  
            better enable law enforcement officers and other public agents  
            with whom they interact and refer them to veterans' services,  
            if appropriate.

           2)Background.   California is home to approximately 2 million  
            veterans.  

            The Department of Defense (DOD) issues to each active member  
            of the armed forces an identification card that demonstrates  
            the person's current participation in the military.  The DOD,  
            however, does not issue identification indicating a person's  
            status as a veteran.  Rather, DOD issues such a person DD form  
            214, a letter-sized document that contains several types of  
            personal information.  Veteran's groups contend that, in the  
            past, this form adequately served the needs of veterans, who  
            needed to present the document only on those generally rare  
            occasions when veterans interacted with the federal Veterans'  
            Affairs system.  

            More recently, an increasing number of private organizations  
            have offered benefits, such as price discounts, to veterans.   
            A person could verify eligibility for such benefits by  








                                                                  AB 531
                                                                  Page  3

            presenting DD Form 214.  Because of its size, the document is  
            unlikely to be carried routinely by veterans.  In addition,  
            because the document contains sensitive personal information,  
            many are reluctant to keep the form with them, in any case.

            According to the policy committee analysis, 13 states have  
            enacted laws similar to this bill.

           3)Prior Legislation  . This bill is substantially similar to AB  
            1725 (Lowenthal) of 2012, which was held on this committee's  
            Suspense file. One difference is that AB 531 would delay  
            implementation by one-year, which is intended to give the DMV  
            more time to resolve technical issues.

           4)Mission Creep  ?  As discussed last year with AB 1725, this bill  
            complicates the work of DMV, which exists, primarily, to  
            register vehicles and license drivers, a complex job given its  
            sensitivity and the size of state's population and economy.  
            The DMV would need to verify the claims of applicants  
            asserting veteran status. While the bill deems sufficient the  
            presentation of DD Form 214 or verification from the county  
            veterans service office that the applicant has received a DD  
            Form 214, this form is not itself a secure document:  
            fraudulent DD Form 214s can be obtained online.  DMV would  
            need to develop a protocol for verifying a person's veteran  
            status, likely a costly, burdensome process to develop and to  
            implement.  

            In addition, this bill establishes the precedent of using DLs  
            and IDs as verifiers of a person's occupation, or previous  
            occupation. The arguments that justify such an inclusion could  
            apply equally, or nearly equally, to members of other  
            occupations, such as police officers and fire fighters, who  
            sometimes receive private benefits resulting from their  
            occupation.  It seems reasonable to expect calls to expand the  
            insignia program to cover other occupations and groups, should  
            this bill become law.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081