BILL ANALYSIS
AB 498
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Date of Hearing: January 21, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 498 (Hayashi) - As Amended: January 4, 2010
Policy Committee:
TransportationVote:14-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill exempts former prisoners of war (POWs) from the $30
fee for a veterans' organization license plate.
FISCAL EFFECT
1)One-time programming and administrative costs to DMV of around
$50,000 related to creation of a new sub-class of registrants
for their computer systems.
2)Additional cost pressures, to the extent that this exemption
will result in additional requests for exemptions from license
plate fees.
3)Minor loss, probably less than $10,000, of revenues to
veterans organizations, to the extent that some former POWs
are currently paying supplemental fees for veteran's
organization license plates would no longer have to do so.
COMMENTS
1)Background . Existing law allows veterans' organizations to
apply for the issuance of special interest license plates
bearing a distinctive design or decal of their choosing. Once
approved, these plates can be issued to vehicle owners upon
the payment regular registration fees and an additional $30
fee, which is used to support various veteran organizations.
Current law also allows a former American POWs to apply for
special license plates containing a replica design of the
AB 498
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American Prisoner of War Medal followed by the letters "POW"
and four numbers. The plates also contain the words:
"Ex-Prisoner of War." These plates are exempt from the $48 fee
normally assessed for issuance of environmental license plates
(those where the plates' numbers and letters have been
specifically requested by the vehicle owner) as well as the
$38 fee normally assessed for the transfer of plates.
2)Rationale . The purpose of the bill is to provide former POWs
with greater choice regarding fee-exempt license plates. The
author states that "while ex-POWs are proud of their military
service, not all are comfortable advertising that they are a
former POW," This bill would give an ex-POW the option to
order a veterans' organization license plate and still have
the license fees waived.
3)Fiscal Concern . Given the significant programming and
administrative expenses that this bill will entail, its costs
appear to significantly outweigh the limited benefits it will
convey to a small group of former POWs.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081