BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1658|
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THIRD READING
Bill No: AB 1658
Author: Gatto (D), et al.
Amended: 8/6/12 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 9-0, 6/26/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Lowenthal,
Pavley, Rubio, Simitian, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/6/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 76-0, 5/30/12 - See last page for vote
SUBJECT : California legacy license plates
SOURCE : Author
DIGEST : 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
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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 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.
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
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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 any
one of the legacy license plates. If it does not
receive 7,500 paid applications for any one of the three
plates described above by 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
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Purpose of the bill . 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
One-time costs of approximately $385,000 to DMV to
establish a program for each new plate design that meets
the 7,500 application threshold by January 1, 2015.
These costs would be fully covered by fees paid in
advance by applicants.
Minor costs of approximately $10,000 in 2013-14, and
approximately $21,000 in 2014-15, to DMV (Motor Vehicle
Account) to establish and administer the application
process, and refund deposits if a plate design fails to
meet the 7,500 application threshold by January 1, 2015.
Unknown, likely minor costs to DMV for marketing the
program (Motor Vehicle Account). Without identified
resources for a full marketing campaign, this would
likely entail posting a link to information about the
program on DMV's Web site.
Unknown ongoing revenue gains to the extent that a new
plate design meets the minimum application threshold.
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Issuance, renewal, and transfer fees in excess of DMV's
initial and ongoing administrative costs would be
deposited into the Environmental License Plate Fund.
SUPPORT : (Verified 8/7/12)
American Federation of State, County and Municipal
Employees
Association of California Car Clubs
ASSEMBLY FLOOR : 76-0, 5/30/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Wagner,
Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Cedillo, Fletcher, Gorell, Valadao
JJA:m 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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