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 ----------------------------------------------------------------- |Author: |Bates | |----------+------------------------------------------------------| |Version: |4/6/2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Randy Chinn | |: | | ----------------------------------------------------------------- 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 --