BILL ANALYSIS Ó AB 1658 Page 1 ASSEMBLY THIRD READING AB 1658 (Gatto) As Amended April 11, 2012 Majority vote TRANSPORTATION 14-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Bonnie Lowenthal, |Ayes:|Fuentes, Harkey, | | |Jeffries, Achadjian, | |Blumenfield, Bradford, | | |Blumenfield, Bonilla, | |Charles Calderon, Campos, | | |Buchanan, Eng, Furutani, | |Davis, Donnelly, Gatto, | | |Galgiani, Logue, Miller, | |Ammiano, Hill, Lara, | | |Norby, Portantino, | |Mitchell, Nielsen, Norby, | | |Solorio | |Solorio, Wagner | | | | | | ----------------------------------------------------------------- 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' designs to be identical to a regular license plate to the extent feasible, 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 AB 1658 Page 2 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 Plate 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 7,500 paid 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 7,500 paid applications for the particular plates by January 1, 2014. If, after that date, 7,500 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 (ELP) 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 AB 1658 Page 3 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 : According to the Assembly Appropriations Committee, there will be: 1)Potential one-time costs of approximately $385,000 to DMV to establish the Legacy License Plate Program, including computer programming changes and updating of forms. DMV will make computer programming and form changes only after Legacy License Plate Program applications surpass the 7,500 application threshold. Therefore, DMV will incur these costs only if it receives enough applications to require it to implement the program. 2)Minor, absorbable one-time costs to DMV in 2012-13 and 2013-14 to administer the application process and, should the department fail to receive 7,500 applications within the timeframe, to issue refunds. 3)Potential annual costs of approximately $15,000 to DMV to administer program. 4)Potential annual revenue of an unknown amount, but sufficient to cover DMV's one-time and ongoing costs, assuming the program receives more than 7,500 applications for retro plates. 5)Potential ongoing annual revenue of an unknown, but minor amount, to the ELP Fund. 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 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." This bill would require DMV, upon receiving at least 7,500 paid applications, to produce and issue new license plates that allow AB 1658 Page 4 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." Analysis Prepared by : Howard Posner / TRANS. / (916) 319-2093 FN: 0003827