BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: sb 1282
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  knight
                                                         VERSION: 2/21/14
          Analysis by:  Carrie Cornwell                  FISCAL:  NO
          Hearing date:  April 29, 2014


          SUBJECT:

          Gold Star Family specialized license plates

          DESCRIPTION:

          This bill authorizes the Department of Motor Vehicles (DMV) to  
          issue personalized Gold Star Family specialized 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 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 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 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 DMV issuing a new special-interest license plate, the  
          state agency must submit 7,500 applications and fees to 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 covers  




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          DMV's costs to establish the license plate.

          State 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 CDVA raises sufficient funds through  
          private and public donations to cover DMV's costs to establish  
          this license plate.  CDVA collected sufficient donated funds,  
          and DMV began issuing Gold Star Family license plates in  
          November 2010.  Since then, DMV has issued Gold Star Family  
          license plates to 737 vehicles.

          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 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 DMV issue the  
          plates in a sequential series.  Therefore, DMV may not issue  
          these as personalized license plates. 

           This bill  strikes the requirement that Gold Star Family license  
          plates be issued in a sequential series, thereby requiring DMV  
          to issue personalized Gold Star Family license plates.  
          
          COMMENTS:

           1.Purpose  .  The term "Gold Star Family" describes a family with  
            a relative who lost his or her life in the line of duty while  
            serving in the United States Armed Forces.  Current law allows  
            DMV to issue Gold Star Family specialized license plates only  
            in sequential series and therefore not as personalized license  




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            plates with a combination of letters, numbers, or both,  
            requested by the owner of the vehicle. 

            Because Gold Star Family license plates pay homage to and  
            remind passersby of the sacrifices made by both the fallen  
            service members and their families, the author states that  
            restricting this special recognition to sequential order  
            license plates is arbitrary and ungrounded.  He states that  
            state law should not subject an immediate family member who  
            has lost a loved one in the defense of our country to an  
            arbitrary restriction as that family member is trying to honor  
            his or her fallen relative.  This bill, therefore, deletes the  
            requirement that DMV issue Gold Star plates as sequential  
            plates only, and thus allows the families to express more  
            fully their messages on their license plates.

           2.The history of no personalized plates  ?  SB 1455 (Cogdill),  
            Chapter 309, Statutes  of 2008, authorized 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 plates.  
           3.Fiscal considerations  .  This bill creates programming and  
            likely other costs for DMV to begin the production of  
            personalized Gold Star Family license plates, but provides no  
            mechanism for DMV to recoup those costs.  Should the committee  
            approve the bill, it may wish to re-refer the bill to the  
            Rules Committee.   Rules Committee could then consider a  
            re-referral to the Appropriations Committee for review of  
            these fiscal matters.
          
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             April 23,  
          2014.)





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               SUPPORT:  None received.

               OPPOSED:  None received.