BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1549
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  florez
                                                         VERSION: 4/9/08
          Analysis by: Carrie Cornwell                   FISCAL:  yes
          Hearing date: April 15, 2008







          SUBJECT:

          License plates on historical vehicles

          DESCRIPTION:

          This bill requires the Department of Motor Vehicles to evaluate  
          its programs that provide special license plates for historical  
          vehicles and to report its findings to the Governor and  
          Legislature.

          ANALYSIS:

          The Department of Motor Vehicles (DMV), upon initially  
          registering a vehicle, issues the owner license plates, which  
          the owner must affix to the vehicle to identify it.  Since the  
          1920s, California has had many plate background and character  
          color combinations.

          In 1963, California replaced all existing license plates with  
          the yellow-on-black plates.

          From 1963 through 1969, DMV issued both passenger and commercial  
          vehicles the yellow-on-black plates. DMV continued to issue the  
          yellow-on-black plates to commercial vehicles and pick-up trucks  
          until 1972. 

          Beginning in 1970, DMV issued yellow-on-blue plates, and then in  
          the 1980s, began issuing blue-on-white plates. Many vehicles on  
          the road today that date from the 1960s and 1970s display the  
          yellow-on-black or yellow-on-blue plates. Only those vehicles on  
          the road from that time that lost their plates or had their  
          plates damaged, display newer plates.





          SB 1549 (FLOREZ)                                          Page 2

                                                                       


          Under the DMV's year-of-manufacture (YOM) program, an owner of a  
          1962 or older vehicle, with the DMV's approval and upon paying  
          specified fees, may use California license plates from the model  
          year of the vehicle, if DMV determines that the plate is legible  
          and serviceable. 
           
          Beginning in July of 2009, the YOM program will be expanded to  
          allow an owner of a 1969 or older model year passenger vehicle  
          or a 1972 or older model year commercial vehicle, which includes  
          pick up trucks, to use a California license plate from the model  
          year of the vehicle. 

          In addition, existing law permits DMV to issue special  
          identification plates to vehicles of historical interest that  
          travel on public roads primarily for the purpose of exhibition.  
          Existing law deems vehicles manufactured before 1922, vehicles  
          with 16 or more cylinders manufactured before 1965, and vehicles  
          at least 25 years old that are collected, restored, maintained  
          and operated for purposes of exhibition to be "historical  
          vehicles." As an example, these historical plates include plates  
          running in a numerical series beginning with "Horseless Carriage  
          No. 1" for vehicles manufactured prior to 1922. These plates are  
          issued upon application and payment of a fee to DMV.

           This bill  requires DMV, by January 1, 2010, to submit to the  
          Governor, this committee, and the Assembly Transportation  
          Committee a report evaluating and recommending changes to the  
          YOM plate program and the historical vehicle plate program. This  
          report shall include:

           An evaluation of the success of the these two programs;
           An estimate of the number of vehicles eligible for these two  
            types of plates;
           The number of vehicles already issued these two types of  
            plates;
           An examination of the benefits and challenges of extending  
            these two programs to vehicles manufactured as recently as  
            1976 and a recommendation on how to determine which newer  
            vehicles should be eligible for these plates; and 
           Recommendations for characterizing cars commonly known as  
            muscle cars, that are owned by car collectors, and including  
            these vehicles in a special plate program.
          
          COMMENTS:

           1.Purpose  . The author reports that classic car hobbyists  




          SB 1549 (FLOREZ)                                          Page 3

                                                                       


            throughout the state complain that the YOM plate program does  
            not cover the collector motor vehicles and classic cars that  
            were manufactured between 1972 through 1976.  Also, the author  
            indicates that the special license plate programs cover some  
            cars and trucks, but he understands that the guidelines for  
            the program are vague as to which cars qualify for special  
            plates.  Given this problem and rumors he has heard that these  
            programs are being placed on the DMV "backburner, " the author  
            believes there is new interest in looking at these programs,  
            but with a more-targeted look at collector motor vehicles and  
            their various sub-groups. 

            The author anticipates that the report this bill mandates will  
            help distinguish the difference between classic cars and  
            trucks and non-classic cars and trucks in California and that  
            it will determine whether these special license plates should  
            be extended to include special plates for vehicles up to the  
            1976 model year.  

            The author notes that these cars represent a great part of  
            nostalgia and a great link to California's heritage and that  
            this bill will provide California car collectors with the  
            information needed to have their vehicles recognized as a  
            classic.

           2.Previous legislation  . Last year, AB 462 (Villines), Chapter  
            497, expanded DMV's YOM program beginning in July 2009 to  
            allow owners of 1969 or older model year passenger vehicles or  
            of 1972 or older model year commercial vehicles to use license  
            plates from the year when the vehicle was manufactured.  
            Previous to the enactment of AB 462, only owners of pre-1963  
            vehicles could apply to DMV under the YOM program to use  
            historic plates on their historic automobiles. This program  
            was, therefore, restricted to plates issued before California  
            replaced all of its plates with the yellow-on-black plates in  
            1963. AB 462 was in response to requests of automobile  
            collectors, who indicated that year-of-manufacture plates  
            directly relate to the value of collectable vehicles, as well  
            as the authenticity of the restoration process, for vehicles  
            manufactured after 1963. 

           3.Muscle car  ? Existing law provides no definition of the term  
            "muscle car." The author may wish to clarify in this bill what  
            types of vehicles he is asking DMV to consider including in  
            its special plate programs under the designation of muscle  
            cars.




          SB 1549 (FLOREZ)                                          Page 4

                                                                       



          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     April 9, 2008)

               SUPPORT:  None received.
          
               OPPOSED:  None received.