BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 1658
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  gatto
                                                         VERSION: 6/18/12
          Analysis by:  Carrie Cornwell                  FISCAL:  yes
          Hearing date:  June 26, 2012



          SUBJECT:

          California legacy license plates

          DESCRIPTION:

          This bill establishes a legacy license plate program through 
          which the Department of Motor Vehicles (DMV) shall issue 
          specialized license plates that replicate the look of California 
          license plates from the state's past.

          ANALYSIS:

          Existing law establishes a basic vehicle registration fee of 
          $46, plus a $23 surcharge for additional personnel for the 
          California Highway Patrol (CHP).   When registering a vehicle, 
          the owner may request an environmental license plate with a 
          personalized message or any of a number of special interest 
          plates that contain a design promoting a certain policy program, 
          such as veterans' services or the California Coastal Commission. 
           To receive and annually renew these special license plates, the 
          vehicle owner must pay additional fees typically of about $50 
          for issuance and $40 for renewal.

          The Department of Motor Vehicles (DMV), when 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. 





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          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.

          Existing law allows an owner of a vehicle that is a 1969 or 
          older model-year passenger vehicle or a 1972 or older commercial 
          vehicle or pick-up truck, with the DMV's approval and upon 
          paying specified fees, to use California license plates from the 
          model year of the vehicle.  The vehicle owner acquires these 
          plates from a private party.  DMV must deem these plates to be 
          legible and serviceable.  These are called "year-of-manufacture" 
          plates, for which the person registering the vehicle must pay a 
          $45 application fee and then a $10 fee each year when renewing 
          the registration of the vehicle displaying the year of 
          manufacture plates.

           This bill  :
          
          1.Directs DMV to create and issue a series of specialized 
            license plates to be known as California Legacy License Plates 
            that DMV would make as nearly identical as reasonably feasible 
            under current manufacturing processes for license plates.  DMV 
            shall create one or more of the following designs for these 
            plates:

             a.   Yellow background with black lettering similar to the 
               appearance of California license plates from 1956 through 
               1962;

             b.   Black background with yellow lettering similar to the 
               appearance of California license plates from 1965 to 1968;

             c.   Blue background with yellow lettering similar to the 
               appearance of California license plates from 1969 through 
               1986.

          2.Imposes additional fees for legacy plates of $50 for original 
            issuance, $40 for annual renewal, $15 to transfer to another 
            vehicle, and $35 for replacement.  

          3.Precludes DMV from issuing any of these plates until it has 
            received at least 7,500 paid applications for legacy license 
            plates.  If it does not receive 7,500 paid applications by 




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            January 1, 2015, then DMV must immediately refund all the 
            application fees that it has received.

          4.Makes monies available to pay DMV's costs to establish the 
            California Legacy License Plate Program only after DMV 
            determines that it has collected sufficient fees to pay its 
            startup costs and the Legislature appropriates the funds.

          5.Directs DMV to deduct its costs for the legacy plates from the 
            fees its receives and to deposit the remaining revenues into 
            the California Environmental License Plate Fund, which upon 
            legislative appropriation supports a variety of state 
            activities that have some environmental connection. 
          
          COMMENTS:

           1.Purpose  .  The author introduced this bill to bring a retro 
            look to modern license plates by allowing consumers to choose 
            from one of three 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).  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, unscrupulous sellers 
            sometimes pass off counterfeit reproductions as genuine 
            "vintage" plates.  The legacy license plates would provide 
            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.

           2."Retro" plates likely not too retro looking.   The bill calls 
            for license plates that replicate the look of past plates.  To 
            enhance readability for law enforcement, California law has 
            long required that license plates must meet various, specific 
            requirements, such as reflectivity and font types, that differ 
            from the requirements of the old plates this bill would 
            replicate.  For this reason, it is likely the plates produced 
            as a result of this bill will differ considerably from 
            historic plates with similar color schemes.  

          3.7,500 of one or a total of 7,500  ?  It is unclear under this 
            bill whether DMV must collect 7,500 paid applications for one 
            of the three replica plates or 7,500 for all three authorized 




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            under this bill in order to establish a legacy plate or 
            plates.   Existing law directs DMV to establish state-agency 
            sponsored special interest plates once the state agency 
            collects 7,500 paid applications, because that is the number 
            of paid applications sufficient to cover DMV's costs of about 
            $385,000 to initiate a new license plate.  The committee may 
            wish to amend this bill to clarify that DMV must receive at 
            least 7,500 applications for one of these plates in order to 
            initiate that one plate.
          
           4.Purpose of a license plate  .  Unlike the existing 
            year-of-manufacture program under which a person who owns a 
            historic vehicle can put a license plate from the year that 
            vehicle was manufactured on the vehicle, this bill allows an 
            old-looking license plate to go on any car, regardless of the 
            year the car was manufactured.  The idea behind these license 
            plates is that they would look good.  The committee may 
            question, however, whether the purpose of a license plate is 
            to enhance a vehicle's aesthetic value or to identify that 
            vehicle to law enforcement.  

           5.Committee policy  .  This committee has long had a policy that 
            reads: "The committee will not consider any measure that would 
            authorize the issuance of a license plate bearing unique 
            graphics or insignia or identifying a particular group 
            affiliation."   It does not appear that this bill violates 
            that policy, as these plates would not bear unique graphics, 
            but would rather replicate old graphics that already exist on 
            California plates.

           6.Technical amendment  .  On page 3, line 16, delete "subdivision" 
            to insert "section"

          Assembly Votes:
               Floor:    76 - 0
               Appr: 17 - 0
               Trans:    14 - 0

          POSITIONS:  (Communicated to the committee before noon on 
          Wednesday,                                             June 20, 
          2012)

               SUPPORT:  American Federation of State, County and 
          Municipal Employees
                         Association of California Car Clubs





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               OPPOSED:  None received.