BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1455
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  cogdill
                                                         VERSION: 4/22/08
          Analysis by: Carrie Cornwell                   FISCAL:  yes
          Hearing date: April 29, 2008





          SUBJECT:

          Special interest license plates

          DESCRIPTION:

          This bill exempts the Department of Veterans Affairs (DVA), if  
          it sponsors a Gold Star Family specialized license plate, from  
          the requirement that it collect 7,500 paid applications for that  
          license plate prior to the Department of Motor Vehicles (DMV)  
          issuing it.

          ANALYSIS:

          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 provided that for each state  
          agency:

                 The license plate has "a design or contains a message  
               that publicizes or promotes a state agency, or the official  
               policy, mission, or work of a state agency." The design  
               shall also be confined to the left of and below the  
               numerical series (i.e., no full plate designs allowed).

                 Plate revenues are used "exclusively for projects and  
               programs that promote the state or local agency's official  
               policy, mission, or work." These funds are deposited into  
               the Specialized License Plate Fund and are continuously  
               appropriated to the agency sponsoring the plate.

                 The state agency submits 7,500 applications and fees to  
               DMV for the license plate. 

          In addition to the usual registration and license fees, DMV  
          charges the following additional fees for specialized license  




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          plates: $50 (original), $40 (renewal), $15 (transfer), and $35  
          (license substitute) and deducts its administrative costs from  
          the revenues generated.  A state agency may not spend more that  
          25 percent of its license plate funds for administrative,  
          marketing, and promotional costs associated with the plate, and  
          it must submit an annual accounting report to DMV.

           This bill  :

          1)Finds and declares that "Gold Star Family" is commonly  
            understood to describe a family who has lost a loved one in  
            military service and notes that Gold Star Families in  
            California want to honor their lost family members through the  
            creation of a special license plate.

          2)Allows DVA to sponsor a Gold Star Family specialized license  
            plate in the absence of 7,500 paid applications provided that  
            DMV determines there are sufficient funds in the Gold Star  
            Family License Plate Account, which the bill creates, to cover  
            DMV's costs to establish this license plate.

          3)Permits DVA to raise funds through donations from public and  
            private entities for the Gold Star Family License Plate  
            Account and exempts a Gold Star Family specialized license  
            plate from the fees for specialized license plates in existing  
            law.

          4)Requires DVA to determine if the vehicle owner applying for  
            Gold Star Family specialized license plates is eligible to  
            acquire these plates and to notify DMV of that person's  
            eligibility.

          5)Defines as eligible to acquire Gold Star Family specialized  
            license plates a person who:

             i)   Is otherwise eligible to register a motor vehicle;

             ii)        Can present proof from either the U.S. Department  
               of Veterans Affairs or the Department of Defense that the  
               member of the Armed Forces of the United States was killed  
               while on active duty; and 

             iii)       Bears and can show proof satisfactory to DVA of  
               one of the following relationships to the person killed  
               while on active duty:





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                               Widow or widower
                               Biological parent, adoptive parent, step  
                      parent, or foster parent 
                               Biological child, adoptive child, or  
                      stepchild
                               Sibling or half-sibling
                               Grandparent
                               Grandchild

          1)Permits a Gold Star Family specialized license plate to be  
            transferred to a surviving spouse, upon the death of a person  
            issued the license plate.
          
          BACKGROUND:

          The Vehicle Code requires DMV to issue, upon legislative  
          authorization, a special interest license plate that bears a  
          distinctive design or decal of a sponsoring organization to any  
          vehicle owner that pays specified fees and that is displayed in  
          place of regular license plates, provided that certain  
          conditions are met. These conditions include that an entity  
          sponsoring a special interest license plate collect 7,500  
          applications and fees for a special license plate. 

          Those provisions of the Vehicle Code were invalidated in 2004 by  
          a federal court decision, Women's Resource Network v. Gourley,  
          E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., which declared them  
          unconstitutional because they violate the First Amendment right  
          to freedom of speech.  The court specifically objected to the  
          Legislature "picking and choosing" special license plates that  
          private organizations propose, in essence promoting the message  
          of some organizations while denying this right to others. The  
          court did allow special interest license plates existing at the  
          time of its decision to remain in use and available to new  
          applicants.

          In response to the court decision, AB 84 (Leslie), Chapter 454,  
          Statutes of 2006, established the specialized license plate  
          program, under which a state agency could sponsor a license  
          plate that promotes its mission. When the Legislature considered  
          AB 84 it was to provide a forum for government speech that  
          promotes California's state policies and excludes private  
          organizations from seeking specialized license plates as a forum  
          for private speech, and thus addressed the court's objection.   
          To date, no license plates have been issued under AB 84's  
          specialized license plate program.




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          The current special interest license plate types, all issued  
          before the 2004 Gourley decision, include (with the total number  
          of license plates outstanding): Collegiate (UCLA) (2,374),  
          Yosemite (52,208), Olympic Training Center (3,326), Arts  
          (73,535), Kids (117,055), Veterans (22,977), Firefighters  
          (22,000), Lake Tahoe (33,512), Coastal Conservancy (Whale Tail)  
          (99,529), and the California Memorial License Plate (25,772).

          Because of the proliferation of license plate types and their  
          resulting loss of effectiveness as a vehicle identifier, the  
          Senate Transportation Committee in the mid-1990s adopted a  
          committee policy that established a moratorium on the  
          consideration of any special interest license plate bills.  The  
          committee has approved the policy for all subsequent legislative  
          sessions, including the current one.  Despite the committee  
          policy, the committee has approved some special interest license  
          plate bills, including those creating plates for the Girl Scouts  
          of America, the Rotary International, the Ronald Reagan  
          Presidential Library, breast cancer treatment, and  
          anti-terrorism programs.  With the exception of the California  
          Memorial License Plate, which was specifically exempt from this  
          requirement, none of these license plates were ever issued  
          because the sponsors were unable to collect the required 7,500  
          initial subscriptions.

          COMMENTS:

           1.Purpose  . The author introduced this bill at the request of the  
            Department of Veterans Affairs to provide recognition through  
            a special license plate to families who have lost a loved one  
            in service in the United States military. By exempting a Gold  
            Star Family license plate from the 7,500 subscription  
            requirement and creating an alternative funding mechanism, the  
            author notes that the bill allows the state to show its  
            gratitude to Gold Star Families without placing an additional  
            burden on the state's taxpayers.  Proponents point out that  
            over a dozen states have already established Gold Star Family  
            license plates available to their residents that have suffered  
            tragic losses due to war. 

           2.Committee policy  . As described in the background section  
            above, this committee has long had a policy that reads in  
            part: "The Committee will not consider any measure that would  
            authorize the issuance of a special interest license plate  
            bearing unique graphics or insignia, or identifying a  




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            particular group affiliation ? ."  This bill provides for the  
            creation of a special interest license plate that bears unique  
            graphics in order to identify a particular group affiliation,  
            that of Gold Star Families. Rather than creating the special  
            interest license plate for Gold Star Families, this bill  
            creates an exemption for DVA to existing law that allows state  
            agencies to create plates to promote their own mission if they  
            collect 7,500 applications for a plate. Because the bill  
            itself does not actually create a special license plate, it  
            does not violate the committee's policy.

           3.The first of many exemptions  . Proponents have asserted that  
            Gold Star Families are uniquely worthy of a special license  
            plate because of the tragedy each has endured in service to  
            this country. While no one disputes that these families each  
            have faced a terrible loss, it is highly likely that if this  
            bill is enacted it will be the first of several such plates.  
            It is easy to imagine that the families of fallen law  
            enforcement, highway workers, and firefighters would seek a  
            similar special license plate.
          
          RELATED LEGISLATION

          SB 287 (Denham) would have established a Gold Star Family  
          special license plate. Held in this committee and died without  
          being heard.

          AB 2896 (Leiber) establishes a Gold Star Family special license  
          plate. Pending in the Assembly Appropriations Committee.

          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday,                                             April 23,  
          2008)

               SUPPORT:  Department of Veterans Affairs (sponsor)
                         Blue Star Moms, East Bay Chapter #101 
                         California State Commanders Veterans Council 
                         Marine Corps League - Modesto Detachment # 19  
                         Hon. Mary Nejedly Piepho, Contra Costa County  
                    Supervisor - District 3
                         Approximately 80 individuals

               OPPOSED:  None received.