BILL ANALYSIS
AB 498
Page 1
ASSEMBLY THIRD READING
AB 498 (Hayashi)
As Amended January 25, 2010
Majority vote
TRANSPORTATION 14-0 APPROPRIATIONS 17-0
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|Ayes:|Eng, Jeffries, Bill |Ayes:|De Leon, Conway, Ammiano, |
| |Berryhill, Blumenfield, | |Bradford, Charles |
| |Buchanan, Furutani, | |Calderon, Coto, Davis, |
| |Galgiani, Garrick, Bonnie | |Fuentes, Hall, Harkey, |
| |Lowenthal, Miller, | |Miller, Nielsen, John A. |
| |Niello, John A. Perez, | |Perez, Skinner, Solorio, |
| |Solorio, Torlakson | |Audra Strickland, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Allows former prisoners of war (POWs) to obtain
veterans' license plates without charge. Specifically, this
bill allows:
1)Any former American POW who is otherwise eligible for a
special interest license plate to instead apply for a
veterans' organization license plate and decal and be afforded
the same fee exemptions as are granted for POW plates.
2)The surviving spouses of former POWs to retain the veterans'
organization plates under the same conditions.
EXISTING LAW :
1)Allows persons who are a former American POWs to apply for
special license plates containing a replica design of the
American Prisoner of War Medal followed by the letters "POW"
and four numbers.
2)Requires these plates issued to also contain the words:
"Ex-Prisoner of War."
3)Requires the Department of Motor Vehicles (DMV) to reserve and
issue the plates only to persons who show by satisfactory
proof former POW status.
AB 498
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4)Exempts these plates 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.
5)Exempts POW plates from all vehicle registration fees other
than for duplicate plates, cards, certificates.
6)Allows veterans' organization to apply for the issuance of
special interest license plates bearing a distinctive design
or decal of their choosing.
7)Allows vehicle owners to be issued these plates upon the
payment of both the regular fees for an original registration,
a renewal of registration, or a transfer of registration, as
well as the payment of additional fees associated with these
particular plates.
FISCAL EFFECT : According to the Assembly Appropriations
committee:
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 system.
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 revenue to veterans
organizations, to the extent that some former POWs who are
currently paying supplemental fees for veteran's organization
license plates would no longer have to do so.
COMMENTS : According to the author, although former American
POWs may obtain special license plate that are exempt from
vehicle license and registration fees, they have a limited
selection of license plates to choose from, all which include
the replica of the Ex-POW Medal followed by the letters "POW"
and four numbers. "While ex-POWs are proud of their military
service, not all are comfortable advertising that they were a
former POW," she reports.
AB 498
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As expressed by the author, this bill therefore, "simply allows
ex-POWs the option to order a veterans' organization license
plate, also known as a Veterans License Plate and still have
their license fees waived."
There are 1,733 Ex-POW license plates that have been issued,
only 862 of which have 2009 registrations, while there are
25,346 veterans' license plates currently in circulation. Fees
from the veterans' plates raise funds to support veterans'
organizations. In calendar year 2008, the revenues from that
program totaled over $600,000. Any ex-POWs who chose to obtain
a veterans plate rather than a POW plate under this bill (likely
a very small number) would not be contributing toward those
organizations.
DMV's computers are programmed to calculate fees based upon
license plate type. Differentiating different vehicle owners
displaying veterans' license plates by identifying the subclass
of former POWs as being exempt from all fees could require DMV
to expend as much as $50,000 in programming costs and there
would probably be some ongoing workload costs as well.
Additionally, there are holders of other special military
recognition plates (Pearl Harbor, Purple Heart) who might see
this as a precedent and then seek the option of obtaining
veterans' plates for themselves without charge, further
straining DMV resources.
Analysis Prepared by : Howard Posner / TRANS. / (916) 319-2093
FN: 0003576