BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 257            Hearing Date:    4/28/2015
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          |Author:   |Bates                                                 |
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          |Version:  |4/6/2015                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Randy Chinn                                           |
          |:         |                                                      |
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          SUBJECT:  Vehicles:  Gold Star Family license plates

            DIGEST:  This bill requires the Department of Motor Vehicles  
          (DMV) to issue personalized Gold Star License Plates.

          ANALYSIS:
          
          Personalized license plates

          Since 1979, state law has allowed a vehicle owner, when  
          registering a vehicle, to request a personalized license plate  
          (sometimes referred to as a "vanity plate" or called an  
          "environmental license plate" in state law) that the DMV issues  
          in a combination of letters or numbers, or both, that the  
          vehicle owner selects.  Vehicle owners must pay additional fees  
          for the issuance, renewal, transfer, and duplicates of a  
          personalized plate.  Revenue derived from these fees supports a  
          variety of state activities that have some environmental  
          connection. 

          Gold Star Family specialized license plates

          Existing law provides for a specialized license plate program,  
          under which the DMV may issue new special-interest license  
          plates only on behalf of state agencies.  A state agency's  
          special-interest license plate design must publicize or promote  
          the agency, its work, its official policy, or its mission, and  
          be confined to the left of and below the numerical series (i.e.,  
          no full plate designs allowed).  

          Prior to the DMV issuing a new special-interest license plate,  







          SB 257 (Bates)                                      Page 2 of ?
          
          
          the state agency must submit 7,500 applications and fees to the  
          DMV for the license plate.  In addition to the usual vehicle  
          registration fees, these fees include additional charges for  
          specialized license plates to fund the work of the state agency.  
           The additional fees for the first 7,500 applications cover the  
          DMV's costs to establish the license plate.

          Existing law specifically allows the California Department of  
          Veterans Affairs (CDVA) to sponsor a Gold Star Family  
          specialized license plate in the absence of 7,500 paid  
          applications, provided that the CDVA raises sufficient funds  
          through private and public donations to cover the DMV's costs to  
          establish this license plate.  The CDVA collected sufficient  
          donated funds, and DMV began issuing Gold Star Family license  
          plates in November 2010.  

          To receive Gold Star Family license plates for a vehicle, the  
          vehicle's registered owner must present proof from either the  
          U.S. Department of Veterans Affairs or the Department of Defense  
          showing that a family member who was in the Armed Forces of the  
          United States was killed while on active duty.  Further, the  
          vehicle owner must show proof satisfactory to the CDVA of one of  
          the following relationships to the person killed while on active  
          duty:

           Widow or widower
           Biological parent, adoptive parent, stepparent, or foster  
            parent 
           Biological child, adoptive child, or stepchild
           Sibling or half-sibling
           Grandparent
           Grandchild

          Existing law exempts Gold Star Family license plates from the  
          additional fees for special-interest license plates and for  
          personalized plates.  The law also requires that the DMV issue  
          the plates in a sequential series.  Therefore, the DMV may not  
          issue these as personalized license plates. 

          This bill requires the DMV to issue personalized Gold Star  
          Family license plates (e.g., not in sequential series) upon  
          payment of $49.  The fees shall be deposited into the Motor  
          Vehicle Account.  Once those fees have covered the DMV's cost of  
          implementing the personalization program, all additional fees  
          shall be deposited into the Veterans Service Office Fund.








          SB 257 (Bates)                                      Page 3 of ?
          
          

          COMMENTS:

          1)Purpose of bill.  The author states that Gold Star Family  
            license plates pay homage to and remind passersby of the noble  
            sacrifices made by both the fallen veterans and their  
            families.  Immediate family members who have lost a loved one  
            should not be subject to the arbitrary restriction of  
            prohibiting the personalization of these license plates when  
            trying to honor their fallen family member.

          2)In the beginning.  SB 1455 (Cogdill), Chapter 309, Statutes   
            of 2008, authorized the CDVA to sponsor the Gold Star Family  
            license plate even without 7,500 paid applications for the  
            plate.  The fees accompanying these applications would have  
            covered DMV's costs to establish the plate.  Instead, SB 1455  
            allowed CDVA to raise private and public donations, and when  
            DMV deemed those sufficient to cover its startup costs, then  
            DMV would start production of the plate.  During negotiations  
            on that bill, DMV staff indicated that the costs of  
            establishing the plate would be significantly lower if DMV  
            issued the plate solely in sequential order rather than as  
            personalized plates.  To reduce the amount of funds that CDVA  
            would need to raise, SB 1455 included the provision allowing  
            DMV to issue sequential plates only.  This bill would remove  
            that provision, thereby causing DMV to incur additional costs  
            now to modify its system to provide for personalized Gold Star  
            Family license plates.  

          3)Nothing personal.  Current law allows for several different  
            specialty license plates.  Most, such as the Former American  
            Prisoners of War plate and the Purple Heart Recipient plates,  
            do not allow personalization.

          4)No windfall.  In 2014, the DMV estimated its cost to offer  
            personalized Gold Star Family license plates at about  
            $377,000.  At $49 apiece, it will take an additional 7,700 of  
            these plates to cover the DMV's costs.  Since November 2010,  
            when the Gold Star Family license plates were first made  
            available, 733 have been issued, virtually unchanged from last  
            year.

          Related Legislation:
          
          SB 1282 (Knight; 2014) - removed the requirement that Gold Star  








          SB 257 (Bates)                                      Page 4 of ?
          
          
          Family license plates be issued sequentially.  The bill was  
          approved by this committee 
          11-0 and was held in the Senate Appropriations Committee.

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          April 22, 2015.)
          
            SUPPORT:  

          None received

          OPPOSITION:

          None received
                                      -- END --