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