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. AB 1658 (GATTO) Page 2 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 AB 1658 (GATTO) Page 3 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 AB 1658 (GATTO) Page 4 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 AB 1658 (GATTO) Page 5 OPPOSED: None received.