Existing law establishes a specialized license plate program under which the Department of Motor Vehicles (DMV) issues specialized license plates on behalf of a sponsoring state agency that meets certain requirements. Existing law authorizes the Department of Veterans Affairs to sponsor a Gold Star Family specialized license plate program, which allows specified persons to apply for Gold Star Family license plates. Existing law requires that Gold Star Family license plates be issued in a sequential series. Existing law imposes additional fees for the issuance and renewal of specialized license plates, but exempts Gold Star Family license plates from these fees. Existing law also requires an applicant to pay specified environmental fees when applying for a specialized environmental license plate. plate, and directs the DMV to deposit this revenue in the California Environmental License Plate Fund.

This bill would, commencing July 1, 2016, authorize January 1, 2017, require the DMV to issue personalized Gold Star Family license plates as environmental license plates if the requester pays a $48 personalization fee and specified the above-described environmental license plate fees and specialized license plate fees. The bill would direct the revenue generated from the personalization fee and the environmental license plate fees to be deposited into the Motor Vehicle Account within the State Transportation Fund until the DMVs upfront cost of implementing this program is covered. The bill would then direct the this revenue generated from the personalization fee and the environmental fees to be deposited into the Veterans Service Office Fund.

Existing law establishes a specialized license plate program under which the Department of Motor Vehicles (DMV) issues specialized license plates on behalf of a sponsoring state agency that meets certain requirements. Existing law authorizes the Department of Veterans Affairs to sponsor a Gold Star Family specialized license plate program, which allows specified persons to apply for Gold Star Family license plates. Existing law requires that Gold Star Family license plates be issued in a sequential series. Existing law requires an applicant to pay specified environmental fees when applying for a specialized environmental license plate.

This bill would would, commencing July 1, 2016, authorize the DMV to issue personalized Gold Star Family license plates if the requester pays a $49 personalization fee. $48 personalization fee and specified environmental fees. The bill would direct the revenue generated from the personalization fee and the environmental fees to be deposited into the Motor Vehicle Account within the State Transportation Fund until the DMVs upfront cost of implementing this program is covered. The bill would then direct the revenue generated from the personalization fee and the environmental fees to be deposited into the Veterans Service Office Fund.

Existing law establishes a specialized license plate program under which the Department of Motor Vehicles (DMV) issues specialized license plates on behalf of a sponsoring state agency that meets certain requirements. Under existing law, the DMV charges specified fees related to the issuance of those plates and deposits the fees, less the DMVs costs, in the Specialized License Plate Fund.

This bill would make a technical, nonsubstantive change to that provision.

Date of Hearing: August 19, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

SBPCA Bill Id:SB 257

Author:(Bates) – As Amended Ver:August 17, 2015

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

SUMMARY:

This bill:

1. Expands the Gold Star Family specialized license plate program, which currently allows only for sequential plates, to allow eligible vehicle owners to obtain personalized plates, commencing January 1, 2017.

2. Requires that those seeking personalized plates per (1) pay the $50 initial plate fee plus the $48 initial fee for personalization, in addition to ongoing license renewal fees, and directs this revenue to the Motor Vehicle Account (MVA) until the DMV's upfront costs to produce the personalized plates are recovered. After DMV's costs are recouped, the revenue would be deposited into the Veterans Service Fund.

FISCAL EFFECT:

1. One-time special fund costs of approximately $400,000 for DMV to establish a personalized Gold Star Family license plate program, including computer programming changes and updating forms.

2. The above costs are to be reimbursed from license application and renewal fees paid by program participants and by any donations for the program received by the California Department of Veterans Affairs (CalVet), as allowed under existing Gold Star Family program. Given the relatively small universe of eligible program vehicle owners and the inherent uncertainty of donation levels, full reimbursement to the DMV could take a very long time, after which revenue would accrue to the Veterans Service Fund.

COMMENTS:

1. Specialized License Plates. Prior to 2007, any new special interest license plate required specific legislative authorization. This practice was held to be unconstitutional in that the Legislature approved some of the plates, and rejected others, using no standardized or objective criteria for those decisions. Pursuant to AB 84 (Leslie)/Statutes of 2006, the DMV will issue specialized license plates when sponsored by a state agency, the plate's message and resulting revenues support that agency's program, and at least 7,500 paid license applications have been received. The 7,500-application threshold attempts to assure that DMV's startup costs are fully covered, by the portion of the registration fee surcharge directed to the department, and to avoid a proliferation of different types of plates, which can be troublesome from a law enforcement perspective.

2. Gold Star Family Plates. SB 1455 (Cogdill), Chapter 309, Statutes of 2008, authorized the Department of Veterans Affairs (CalVet) to sponsor a Gold Star Family specialized license plate program. Eligibility for these plates is limited to vehicles owned by family members of members of the U.S. Armed Forces who were killed in the line of duty. An applicant for these plates is exempt from paying the usual fees for the issuance and renewal of specialized license plates.

Instead of requiring the 7,500 pre-paid applications for a specialized license plate program, SB 1455 authorized CalVet to solicit public and private donations for deposit into a special fund to cover DMV’s administrative costs to establish the Gold Star Family plate program. As a cost-saving measure to get the program started, the plates may only be issued in a sequential series, thus they may not be issued as personalized plates, referred to in statute as “environmental license plates.” The DMV began issuing Gold Star Family license plates in November of 2010 and has issued 733 plates to date. There are currently 658 registered vehicles with Gold Star Family plates.

3. Purpose. The author states that Gold Star Family members who have lost a loved one who gave their life in defense of our country should not be subject to an arbitrary restriction when trying to honor their fallen family member with a Gold Star Family specialized license plate.
   
   

4. Concern. Unlike all other specialized and environmental license plate programs, this bill requires the DMV, and the MVA, to incur significant costs up front, with no timetable for full reimbursement.

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

Date of Hearing: July 13, 2015

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

SBPCA Bill Id:SB 257

Author:(Bates) – As Amended Ver:June 2, 2015

SENATE VOTE: 40-0

SUBJECT: Vehicles: Gold Star Family license plates.

SUMMARY: Authorizes the Department of Motor Vehicles (DMV) to issue personalized Gold Star Family specialized license plates, as specified.

EXISTING LAW:

1. Requires DMV, upon registration of a vehicle, to issue two fully reflectorized license plates to the registered owner of the vehicle, as specified.

2. Requires every license plate issued by DMV to have displayed upon it the registration number assigned to the vehicle for which it is issued, as specified.

3. Allows a state agency to apply to DMV to sponsor a specialized license plate program, as specified.

4. Requires specialized license plates to be issued in sequential order in a combination of letters and numbers, as specified.

5. Authorizes the state Department of Veterans Affairs (CDVA) to sponsor a Gold Star family specialized license plate program and authorizes DMV to issue Gold Star specialized license plates to vehicles owned by an eligible family member of a member of the Armed Forces who was killed in the line of duty. Provides that DMV is authorized to issue the plates in absence of the 7,500 paid application requirement if sufficient donations are collected to cover program costs.

FISCAL EFFECT: Unknown

COMMENTS: SB 1455 (Cogdill), Chapter 309, Statutes of 2008, authorized CDVA to sponsor the Gold Star Family license plate, and exempted CDVA from having to meet the 7,500 paid applications requirement before plates could be issued. Instead, SB 1455 allowed CDVA to raise private and public donations to cover DMV startup costs so that DMV could start production of the plate. At the time SB 1455 was moving through the legislative process, DMV staff indicated that the costs of establishing the plate would be significantly lower if DMV issued the plate consistent with existing law, that is, in sequential order rather than as personalized license plates. To reduce the amount of funds that CDVA would need to raise, SB 1455 specified DMV to issue the Gold Star license plates in sequential order. CDVA collected the necessary donated funds and DMV began issuing Gold Star Family specialized license plates in November 2010. Since November 2010, DMV has issued 733 Gold Star license plates.

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 satisfactory proof to the CDVA of one of the following relationships to the person killed while on active duty:

1. Widow or widower;
   
   

2. Biological parent, adoptive parent, stepparent, or foster parent;
   
   

3. Biological child, adoptive child, or stepchild;
   
   

4. Sibling or half-sibling;
   
   

5. Grandparent; or,
   
   

6. Grandchild

SB 257 authorizes DMV to issue personalized Gold Star Family specialized license plates upon an applicant paying a $48 personalization fee. The fees shall be deposited into the Motor Vehicle Account and once those fees have covered DMV’s cost of implementing the personalization program, all additional fees shall be deposited into the Veterans Service Office Fund. The author states that Gold Star Family members who have lost a loved one who gave their life in defense of our country should not be subject to an arbitrary restriction when trying to honor their fallen family member with a Gold Star Family specialized license plate. The author further notes that the optional fees authorized by this measure gives a choice to loved ones who lost family members in the armed services, but does not require them to pay the fee in order to participate in the program.

Previous legislation: SB 1455 (Cogdill), Chapter 309, Statutes of 2008, allowed CDVA to sponsor a Gold Star Family license plate without meeting the minimum number of applications and fees to cover DMV's program administrative costs if sufficient private and public donations are collected.

REGISTERED SUPPORT / OPPOSITION:

Support

American Legion-Department of California

AMVETS-Department of California

California Association of County Veterans Service Officers

California Council of Chapters

California State Commanders Veterans Council

Military Officers Association of America

Vietnam Veterans of America-California State Council

Opposition

None on file

Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093

 THIRD READING  

Bill No: SB 257

Author: Bates (R), et al.

Amended: 6/2/15

Vote: 21

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 4/28/15

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15

AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

SUBJECT: Vehicles: Gold Star Family license plates

SOURCE: Author

DIGEST: This bill requires the Department of Motor Vehicles (DMV) to issue personalized Gold Star License Plates upon payment of specified fees.

ANALYSIS:

Existing law:

Personalized license plates

1. Allows 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 the 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 a personalized plate. Revenue derived from these fees supports a variety of state activities that have some environmental connection.

Gold Star Family specialized license plates

2. Provides for a specialized license plate program, under which the 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 the DMV issuing a new special-interest license plate, the state agency must submit 7,500 applications and fees to the 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 cover the DMV’s costs to establish the license plate.

3. Allows, specifically, 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 the CDVA raises sufficient funds through private and public donations to cover the DMV’s costs to establish this license plate. The CDVA collected sufficient donated funds, and DMV began issuing Gold Star Family license plates in November 2010.

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.

4. Exempts Gold Star Family license plates from the additional fees for special-interest license plates and for personalized plates. The law also requires that the DMV issue the plates in a sequential series. Therefore, the DMV may not issue these as personalized license plates.

This bill requires the DMV, as of July 1, 2016, to issue personalized Gold Star Family license plates (e.g., not in sequential series) upon payment of $48, with additional fees for renewals and transfers. The fees shall be deposited into the Motor Vehicle Account. Once those fees have covered the DMV’s cost of implementing the personalization program, all additional fees shall be deposited into the Veterans Service Office Fund.

Comments

Purpose of bill. The author states that Gold Star Family license plates pay homage to and remind passersby of the noble sacrifices made by both the fallen veterans and their families. Immediate family members who have lost a loved one should not be subject to the arbitrary restriction of prohibiting the personalization of these license plates when trying to honor their fallen family member.

In the beginning. SB 1455 (Cogdill, Chapter 309, Statutes of 2008) authorized the 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 removes that provision, thereby causing DMV to incur additional costs now to modify its system to provide for personalized Gold Star Family license plates.

No windfall. The DMV estimates its cost to offer personalized Gold Star Family license plates at $425,000. At $48 apiece, it will take an additional 8,850 of these plates to cover the DMV’s costs. Since November 2010, when the Gold Star Family license plates were first made available, 733 have been issued, virtually unchanged from last year.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

1. One-time DMV costs in the range of $425,000 in 2015-16, primarily related to programming changes to allow for personalization of Gold Star Family plates as well as changes to forms and DMV’s Web site. (Motor Vehicle Account)
   
   

2. Minor future revenue gains will partially offset DMV’s initial programming costs. It is unlikely that the full costs would be offset in the near future. All revenues from the initial $48 fee for a new plate applicant, plus any fees for transfers or annual renewal fees, would be used to reimburse DMV’s costs. The timing of full repayment would depend upon future demand for personalization of the plates.

SUPPORT: (Verified 5/28/15)

None received

OPPOSITION: (Verified 5/28/15)

None received

Prepared by: Randy Chinn / T. & H. / (916) 651-4121

6/2/15 22:06:38

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 257 (Bates) - Vehicles: Gold Star Family license plates

SUSPENSE FILE. AS AMENDED.

Bill Summary:

SB 257 would require the Department of Motor Vehicles (DMV) to offer Gold Star Family specialized license plates as personalized plates, upon payment of a $49 fee.

Fiscal Impact (as approved on May 28, 2015):

• One-time DMV costs in the range of $425,000 in 2015-16, primarily related to programming changes to allow for personalization of Gold Star Family plates as well as changes to forms and the department’s website. (Motor Vehicle Account)
  
  

• Minor future revenue gains will partially offset DMV’s initial programming costs. It is unlikely that the full costs would be offset in the near future. All revenues from the initial $48 fee for a new plate applicant, plus any fees for transfers or annual renewal fees, would be used to reimburse DMV’s costs. The timing of full repayment would depend upon future demand for personalization of the plates.

Background:

Existing law authorizes DMV to establish specialized license plate programs sponsored by state agencies, upon submittal of 7,500 applications and corresponding fees for a new specialized plate. The collection of applications and fees on the front end ensures there are sufficient revenues to cover DMV’s startup costs, and sufficient demand to justify the establishment of a new plate program.

Existing law, SB 1455 (Cogdill), Chap. 309/2008, authorized the Department of Veterans Affairs (CalVet) to sponsor a Gold Star Family specialized license plate program. Instead of requiring 7,500 pre-paid applications, SB 1455 authorized CalVet to solicit public and private donations for deposit into a special fund to cover DMV’s administrative costs to establish the Gold Star Family plate program. CalVet must certify eligibility from an applicant and authorize DMV to issue Gold Star Family license plates for a vehicle owned by an eligible family member of a member of the U.S. Armed Forces who was killed in the line of duty. Existing law exempts an applicant for these plates from paying specified fees for the issuance and renewal of special interest license plates, and specifies the plates may only be issued in a sequential series. As such, they may not be issued as personalized plates, referred to in statute as “environmental license plates.”

DMV began issuing Gold Star Family license plates in November of 2010 and has issued plates to 733 vehicles to date. There are currently 658 registered vehicles with Gold Star Family plates.

Proposed Law:

SB 257 would explicitly authorize Gold Star Family license plates to be personalized if the family member pays a $49 fee for the personalization of the plates. The fees would be deposited into the Motor Vehicle Account until DMV’s initial costs to provide for personalization are covered, after which the fees would be deposited into the Veterans Service Office Fund.

Related Legislation:

SB 1282 (Knight, 2014) would have required DMV to issue personalized Gold Star Family license plates, but did not require payment of fees to personalize the plates. That bill was held on this Committee’s Suspense File last year.

Staff Comments:

As noted above, existing law requires that Gold Star Family specialized license plates may only be issued in a sequential series. This provision was negotiated among DMV, the author, and sponsor, and included in the authorizing statute in the interest of keeping the costs of establishing the program as low as possible to ease CalVet’s fundraising obligation and to expedite the initiation of the program. This bill requires DMV to expand the program to provide for the issuance of personalized plates. Contrary to the spirit of this and other specialized license plate programs that provide for DMV’s full cost recovery, this bill would impose significant costs on DMV to conduct programming and other administrative functions necessary to allow for personalization of Gold Star Family plates. SB 257 does allow for some cost recovery by charging a $49 fee for personalization, but since only 733 Gold Star Family plates have been issued to date, it is unlikely that fee revenues would be sufficient to reimburse DMV for implementation costs anytime soon.

Staff notes that DMV has a significant programming backlog of federal and state mandates. These include federally-mandated changes to the Commercial Driver License System, compliance with which is tied to federal transportation funding, and state mandates such as programming for the veteran designation on driver’s licenses and IDs (AB 935, Chap 644/2014) and the issuance of free ID cards for homeless applicants (AB 1733, Chap 764/2014). Given the backlog, it would be difficult for DMV to complete the programming necessary to implement this bill by the January 1, 2016 operative date without impacting currently scheduled programming priorities.

Author amendments (as adopted on May 28, 2015): Author’s amendments would revise the original application fee for personalization from $49 to $48, and require the payment of an annual $38 fee for renewals, and a $38 fee for transfers of the plates. All revenues from the additional fees would be dedicated to DMVs costs to implement this bill. Once these costs are covered, the additional fee revenues would be deposited into the Veterans Service Office Fund.

Committee amendments (as adopted on May 28, 2015): Committee amendments would add a co-author and delay the operative date until July 1, 2016.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 257 (Bates) - Vehicles: Gold Star Family license plates

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 257 would require the Department of Motor Vehicles (DMV) to offer Gold Star Family specialized license plates as personalized plates, upon payment of a $49 fee.

Fiscal Impact:

• One-time DMV costs in the range of $400,000 in 2015-16, primarily related to programming changes to allow for personalization of Gold Star Family plates as well as changes to forms and the department’s website. (Motor Vehicle Account)
  
  

• Minor future revenue gains will partially offset DMV’s initial programming costs. It is unlikely that the full costs would be offset in the foreseeable future. At $49 per applicant, DMV would need to issue 8,163 personalized Gold Star Family plates to recover all of the initial costs.

Background:

Existing law authorizes DMV to establish specialized license plate programs sponsored by state agencies, upon submittal of 7,500 applications and corresponding fees for a new specialized plate. The collection of applications and fees on the front end ensures there are sufficient revenues to cover DMV’s startup costs, and sufficient demand to justify the establishment of a new plate program.

Existing law, SB 1455 (Cogdill), Chap. 309/2008, authorized the Department of Veterans Affairs (CalVet) to sponsor a Gold Star Family specialized license plate program. Instead of requiring 7,500 pre-paid applications, SB 1455 authorized CalVet to solicit public and private donations for deposit into a special fund to cover DMV’s administrative costs to establish the Gold Star Family plate program. CalVet must certify eligibility from an applicant and authorize DMV to issue Gold Star Family license plates for a vehicle owned by an eligible family member of a member of the U.S. Armed Forces who was killed in the line of duty. Existing law exempts an applicant for these plates from paying specified fees for the issuance and renewal of special interest license plates, and specifies the plates may only be issued in a sequential series. As such, they may not be issued as personalized plates, referred to in statute as “environmental license plates.”

DMV began issuing Gold Star Family license plates in November of 2010 and has issued plates to 733 vehicles to date. There are currently 658 registered vehicles with Gold Star Family plates.

Proposed Law:

SB 257 would explicitly authorize Gold Star Family license plates to be personalized if the family member pays a $49 fee for the personalization of the plates. The fees would be deposited into the Motor Vehicle Account until DMV’s initial costs to provide for personalization are covered, after which the fees would be deposited into the Veterans Service Office Fund.

Related Legislation:

SB 1282 (Knight, 2014) would have required DMV to issue personalized Gold Star Family license plates, but did not require payment of fees to personalize the plates. That bill was held on this Committee’s Suspense File last year.

Staff Comments:

As noted above, existing law requires that Gold Star Family specialized license plates may only be issued in a sequential series. This provision was negotiated among DMV, the author, and sponsor, and included in the authorizing statute in the interest of keeping the costs of establishing the program as low as possible to ease CalVet’s fundraising obligation and to expedite the initiation of the program. This bill requires DMV to expand the program to provide for the issuance of personalized plates. Contrary to the spirit of this and other specialized license plate programs that provide for DMV’s full cost recovery, this bill would impose significant costs on DMV to conduct programming and other administrative functions necessary to allow for personalization of Gold Star Family plates. SB 257 does allow for some cost recovery by charging a $49 fee for personalization, but since only 733 Gold Star Family plates have been issued to date, it is unlikely that fee revenues would be sufficient to reimburse DMV for implementation costs anytime soon.

Staff notes that DMV has a significant programming backlog of federal and state mandates. These include federally-mandated changes to the Commercial Driver License System, compliance with which is tied to federal transportation funding, and state mandates such as programming for the veteran designation on driver’s licenses and IDs (AB 935, Chap 644/2014) and the issuance of free ID cards for homeless applicants (AB 1733, Chap 764/2014). Given the backlog, it would be difficult for DMV to complete the programming necessary to implement this bill by the January 1, 2016 operative date without impacting currently scheduled programming priorities.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: SB 257 Hearing Date: 4/28/2015

SUBJECT: Vehicles: Gold Star Family license plates

DIGEST: This bill requires the Department of Motor Vehicles (DMV) to issue personalized Gold Star 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 the 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 a 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 the 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 the DMV issuing a new special-interest license plate, the state agency must submit 7,500 applications and fees to the 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 cover the DMV’s costs to establish the license plate.

Existing 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 the CDVA raises sufficient funds through private and public donations to cover the DMV’s costs to establish this license plate. The CDVA collected sufficient donated funds, and DMV began issuing Gold Star Family license plates in November 2010.

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

This bill requires the DMV to issue personalized Gold Star Family license plates (e.g., not in sequential series) upon payment of $49. The fees shall be deposited into the Motor Vehicle Account. Once those fees have covered the DMV’s cost of implementing the personalization program, all additional fees shall be deposited into the Veterans Service Office Fund.

COMMENTS:

1. Purpose of bill. The author states that Gold Star Family license plates pay homage to and remind passersby of the noble sacrifices made by both the fallen veterans and their families. Immediate family members who have lost a loved one should not be subject to the arbitrary restriction of prohibiting the personalization of these license plates when trying to honor their fallen family member.

2. In the beginning. SB 1455 (Cogdill), Chapter 309, Statutes of 2008, authorized the 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 license plates.

3. Nothing personal. Current law allows for several different specialty license plates. Most, such as the Former American Prisoners of War plate and the Purple Heart Recipient plates, do not allow personalization.

4. No windfall. In 2014, the DMV estimated its cost to offer personalized Gold Star Family license plates at about $377,000. At $49 apiece, it will take an additional 7,700 of these plates to cover the DMV’s costs. Since November 2010, when the Gold Star Family license plates were first made available, 733 have been issued, virtually unchanged from last year.

Related Legislation:

SB 1282 (Knight; 2014) — removed the requirement that Gold Star Family license plates be issued sequentially. The bill was approved by this committee
11-0 and was held in the Senate Appropriations Committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

April 22, 2015.)

SUPPORT:

None received

OPPOSITION:

None received

-- END --