BILL ANALYSIS Ó AB 1658 Page 1 Date of Hearing: April 9, 2012 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 1658 (Gatto) - As Introduced: February 14, 2012 SUBJECT : Specialty license plates SUMMARY : Establishes a California Legacy License Plate Program. Specifically, this bill : 1)Requires the Department of Motor Vehicles (DMV) to establish a California Legacy License Plate Program and create and issue a series of specialized license plates known as California Legacy License Plates that replicate the look of California license plates from the state's past. 2)Requires the plates' design to be identical to a regular license plate, except for consisting of one or more of the following designs: a) Yellow background with black lettering per the appearance of California license plates issued by DMV in the 1950s; b) Black background with yellow lettering per the appearance of California license plates issued by DMV in the 1960s; and, c) Blue background with yellow lettering per the appearance of California license plates issued by DMV in the 1980s. 1)Levies for these plates, in addition to the regular fees for an original registration or renewal of registration, a fee of $50 for the original issuance of the plates, $40 for registration renewal, $15 for transfer of the plates to another vehicle, and $35 for each substitute replacement plate. 2)Prohibits DMV from issuing a California Legacy License Plates for a vehicle that is exempt from the payment of registration fees. 3)Prohibits DMV from establishing the California Legacy License Plate Program until it has received not less than 2,500 paid AB 1658 Page 2 applications for plates. 4)Requires DMV to collect and hold applications for the plates and to issue them after it has received not less than 2,500 paid applications for the particular plates by January 1, 2014. If, after that date, 2,500 paid applications have not been received, DMV must immediately refund to all applicants all fees or deposits that have been collected. 5)Makes moneys available, upon appropriation by the Legislature, to DMV for the necessary administrative costs of establishing the California Legacy License Plate Program upon determination by DMV that there are sufficient funds for the program. 6)Requires DMV, after deducting its administrative costs, to deposit any additional revenue derived from the issuance, renewal, transfer, and substitution of the specialized license plates into the California Environmental License Plate Fund, for appropriation by the Legislature pursuant to existing law. EXISTING LAW : 1)Allows a state agency to apply to DMV to sponsor a specialized license plate program that DMV may not establish until it has received at least 7,500 applications for that agency's proposed plates. A sponsoring agency is allowed 12 months, following the date of approval of its initial application to sponsor a specialized license plate, to receive the required number of applications. 2)Allows an owner of a vehicle that is a 1969 or older model-year vehicle or the owner of a commercial vehicle or a pickup truck that is a 1972 or older model-year to utilize California license plates from the year corresponding to the model-year date when the vehicle was manufactured, if the model-year date license plate is legible and serviceable, as determined by DMV, in lieu of the license plates that would otherwise be required. FISCAL EFFECT : Unknown COMMENTS : According to the author, this bill is intended to recreate license plates "that replicate the look of plates from the state's past. It seeks to mirror the retro trend in the AB 1658 Page 3 auto industry where companies have produced autos that pay homage to vehicle designs of the past, as well as companies that have revived old models that feature modern takes on vintage designs." The bill would require DMV, upon receiving at least 2,500 paid applications, to produce and issue new license plates that allow consumers to choosing from classic designs from the 1950s/1960s (black lettering on yellow background or yellow lettering on black background) and 1970s/1980s (yellow lettering on blue background). The author adds, "In addition to giving consumers new options on what sort of license plate to use on their vehicles, it would provide classic car collectors a risk-free way to acquire plates that match the vintage of their vehicles. Currently, classic car owners can 'revive' old plates that match the vintage of their vehicle. Unfortunately, there are unscrupulous sellers of these 'vintage' license plates who pass off counterfeit reproductions as genuine 'vintage' plates. The Legacy License Plate Series would let collectors an opportunity, if they choose, to put plates on their vehicles that match the era of their vehicle without fear of being sold fake plates." Suggested committee amendments : Establishing a plate program with only 2,500 applications, especially one that features more than one plate design, would set a costly precedent. This small number of applications would not provide a sufficient or sustainable foundation for a plate program, and would not cover the DMV's implementation costs. California has long required a minimum of 7,500 paid applications in order to establish a new plate. Accordingly, this bill should be amended to reflect that practice. Additionally, DMV points out that the manufacturing process for plates produced during the time period this bill attempts to replicate was very different than what is currently used by the Prison Industry Authority (PIA). The plates from the 50's, 60's and early 70's were made from steel and then dipped in a vat of paint to apply the color. The current plate manufacturing process uses reflectorized sheeting which is laminated onto aluminum plates. Even if solid color sheeting were to be used in the production process, it would not have the same flat look and appearance of a painted plate and would violate the statutory mandate for all plates to be reflectorized. Painted AB 1658 Page 4 aluminum plates are available but are not reflectorized. The bill should therefore be amended to clarify that DMV would produce plates that duplicate vintage plates only to the extent reasonably possible within current production techniques and mandated plate characteristics. Finally, Mr. Jeffries wishes to be listed as a coauthor. Related legislation : AB 610 (Solorio) would grant the Veterinary Medical Board an additional 12 months to gather the required plate 7,500 applications necessary for their sponsorship of a specialty license plate. That bill is currently pending in the Senate Appropriations Committee. REGISTERED SUPPORT / OPPOSITION : Support American Federation of State, County and Municipal Employees Association of California Car Clubs Capitol Auto Club Thunderbolts Opposition None on file Analysis Prepared by : Howard Posner / TRANS. / (916) 319-2093