BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1637
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

               AB 1637 (Frazier and Bloom) - As Amended:  May 1, 2014 

          Policy Committee:                               
          TransportationVote:15-0
                        Veterans Affairs                        9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the DMV, commencing November 11, 2015, to  
          print, upon request, the word "VETERAN" on the face of a  
          driver's license or identification card of an armed forces  
          veteran.  Specifically, this bill:  

          1)Requires the driver's license (DL) or identification card (ID)  
            application for an original, duplicate or in-person renewal DL  
            or ID to be modified to allow an applicant to request the word  
            "VETERAN" be printed on the face of the DL or ID. 

          2)Requires an application form to be developed by the California  
            Department of Veterans Affairs (CalVet) and the DMV to  
            acknowledge verification of veteran status.  

          3)Requires a County Veterans Service Office (CVSO) to verify the  
            veteran's status as a veteran, sign the form develop per (2),  
            and return it to the veteran, and requires the DMV to accept  
            the signed form as proof of veteran status. 

          4)Directs the department, upon payment of any required  
            departmental fee, to print the word "VETERAN" on the face of a  
            DL or ID in a location determined by the department issued to  
            a person who makes this request and presents the verification  
            to the department.

          5)Authorizes the department to charge an as-yet unspecified fee  
            to any person who requests a DL or ID to include "VETERAN".

           FISCAL EFFECT 








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          1)One-time special fund costs of $250,000 to $400,000 for  
            computer programming and to incorporate the required design  
            changes as part of the next contract for the DL and ID.   
            (Motor Vehicle Account (MVA).) 

          2)Annual additional costs of approximately $750,000 to DMV for  
            field office and call center operations. (MVA.) 

          3)DMV estimates additional revenue of around $850,000 in  
            2015-16, and $1.3 million in 2016-17 and 2017-18, assuming the  
            issuance of duplicate DLs to veterans seeking the designation  
            prior to the expiration of their existing license.

          4)Costs to county veterans service officers to verify veteran  
            status and sign the application form should be absorbable.

           COMMENTS  

           1)Background and Purpose  . Active Duty and Reserve veterans have  
            a Military ID card to show their status.  Similarly those who  
            have retired from service also have a similar lifetime ID.   
            Many veterans who are receiving services through the United  
            States Department of Veterans Affairs Health Administration  
            have an ID from that Administration.  However many veterans  
            fall into none of the foregoing categories.  For example, a  
            Marine who served three tours in Afghanistan and left the  
            service after 12 years to pursue civilian opportunities could  
            very likely have no ID to prove his veterans status.  For  
            servicemembers like that, the only method of proving service  
            is by showing a DD 214.

            The bill is drafted so that verification of veteran status  
            happens at the office of the County Veteran Service Officer  
            (CVSO).  This lowers the work burden on DMW, but increases  
            veteran traffic to the CVSOs.  CVSOs can then facilitate  
            connecting veterans to all federal, state, and local benefits  
            to which the veteran may be entitled.

            In support, the California Police Chief's Association states,  
            "Community policing is a fact in today's law enforcement  
            culture, knowing when a veteran is in front of a police  
            officer can and does result in better outcomes and improved  
            community relations."









                                                                  AB 1637
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            Veterans groups also point out that as large numbers of  
            service members return from overseas deployments, they desire  
            an efficient means of proving their eligibility for benefits  
            and discounts (such as those available from Home Depot or  
            Jiffy Lube).

            Forty states currently offer veterans designation on DL's with  
            several additional states considering pending legislation.

           2)Prior Legislation  . AB 531 (Frazier) and AB 1725 (Lowenthal),  
            both similar bills, were held on this committee's Suspense  
            file. For this year's bill, the author has relieved DMV of the  
            verification process. However, as discussed with regard to the  
            prior bills, AB 1637 complicates the work of DMV, which  
            exists, primarily, to register vehicles and license drivers, a  
            complex job given its sensitivity and the size of state's  
            population and economy. 

            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 such an inclusion could  
            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.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081