BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1725
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 1725 (Lowenthal) - As Introduced:  February 16, 2012 

          Policy Committee:                              
          TransportationVote:13-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Department of Motor Vehicles (DMV) to 
          print, upon request, an appropriate insignia upon the driver's 
          license or identification card of a veteran of the armed forces. 
           Specifically, this bill: 

          1)Requires DMV to issue a driver's license (DL) or an 
            identification card (ID) marked with a "V" or other 
            appropriate insignia to a qualified applicant who presents to 
            the department a Certificate of Release or Discharge from 
            Active Duty (DD Form 214) or verification from the county 
            veterans service office that the applicant has received a DD 
            Form 214.

          2)Requires DMV application forms to provide opportunity to 
            indicate veteran status.

          3)Directs DMV to charge additional fees to an applicant for a DL 
            or ID that denotes veteran status, sufficient to cover the 
            department's administrative costs to produce the DL or ID.

          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 for, upon appropriation, for support of 
            county veterans' service offices.

           FISCAL EFFECT  

          1)One-time costs, ranging from $700,000 to $1.5 million, to DMV 
            to revise forms and make computer programming and design 
            changes to provide applicants the opportunity to indicate 








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            veteran status.  (Motor Vehicle Account (MVA).)

          2)Annual costs of approximately $800,000-equivalent to 15 
            employees-to DMV 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 cover DMV's one-time and ongoing costs.   (MVA.)

          1)Annual fee revenue of an unknown but minor amount to the VSOF, 
            to be used for, upon appropriation, for support of county 
            veterans' service offices.

           

          COMMENTS
           
           1)Rationale.   Sponsors contend this bill will 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 with veteran-specific insignia will better 
            enable law enforcement officers and other public agents to 
            identify as veterans individuals 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 








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            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, 12 states in 2011 
            enacted laws to add insignia to DLs to identify a person's 
            status as a veteran. 

           3)Bill Complicates Mission of DMV.   The DMV exists, primarily, 
            to register vehicles and license drivers, a complex job given 
            its sensitivity and the size of state's population and 
            economy.  As recently noted by the Legislative Analyst, DMV 
            has made considerable efforts to improve customer service 
            recently, with some success. 
             
             This bill complicates the work of DMV in a number of ways.  
            First, DMV would need to verify the claims of applicants 
            asserting veteran status.  It is unclear how DMV would do 
            this.  The bill deems sufficient presentation of DD Form 214, 
            or verification from the county veterans service office that 
            the applicant has received a DD Form 214.  However, DD Form 
            214 itself is not 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 inclusion on the DL 
            and ID of identifying insignia for veterans 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.


           4)Support.   This bill is supported by the American 
            Legion-Department of California, AMVETS-Department of 
            California, the California Association of County Veterans 
            Service officers, the California State Commanders Veterans 
            Council and the Vietnam Veterans of America-California State 
            Council, all of which are sponsors of the bill.








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           5)There is no opposition formally registered to this bill.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081