Mr. Kane wrote me an email which he cc'd ARRL Directors Bob Vallio and Dick Norton and ARRL General Counsel Chris Imlay. I made two requests to him for permission to post the email. There was no response. Rick Palm, K1CE, Editor of the ARES Newsletter made a similar request.
Mr. Kane basically stated the DMV legally must follow own regulations and not put a space in its ham callsign plates. Pamela Royce's legal opinion on this website is similar to Mr. Kane's. Of course, the issue its the interpretation of the regulation. DMV's position, see DMV's response to Marvin Munster, on this website, is that the regulations do no prohibit them from adding a space, so they can and did.
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