BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 27
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: medina
VERSION: 6/12/14
Analysis by: Erin Riches FISCAL: yes
Hearing date: June 24, 2014
SUBJECT:
Vehicle registration: trailers: one-trip permits
DESCRIPTION:
This bill extends from five days to 10 days the time period for
which the DMV may issue a one-trip permit for trailers,
semitrailers, or auxiliary dollies not registered in the state.
ANALYSIS:
Existing law requires in general that a vehicle driven, moved,
towed, or left standing on any California highway must have some
form of paid California registration, but exempts certain
vehicles from registration, such as a vehicle being moved or
operated from a dealer's, distributor's, or manufacturer's place
of business to a place where essential parts of the vehicle are
to be altered or supplied.
Existing law requires DMV to issue, upon payment of a $35 fee, a
one-trip permit to a manufacturer or dealer authorizing:
A new trailer, semitrailer, or auxiliary dolly which has never
been registered in any state to operate within, enter, or
leave California for five days as part of one continuous trip
from the place of manufacture to the place where the vehicle
will be offered for sale
A used trailer, semitrailer, or auxiliary dolly which is not
currently registered to be moved or operated laden within,
enter, or leave California for five days as part of one
continuous trip from the place of dispatch or entry into
California to the place where the vehicle will be offered for
sale
Existing law authorizes DMV to issue one-trip permits in bulk
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pamphlets, but provides that each permit shall be valid for only
one trip.
Existing law prohibits a one-trip permit from being used for:
Operating a loaded commercial vehicle, unless the vehicle is
being moved to participate in a parade or display
Traveling by a roundabout or indirect route
Moving a trailer coach owned by a California resident (must be
registered)
Moving a crane or any vehicle requiring an oversize permit
issued by Caltrans
This bill extends from five days to 10 days the time period of
the temporary permit issued by DMV to a manufacturer or dealer
authorizing operation or movement of a new or used trailer,
semitrailer, or auxiliary dolly not registered in the state.
COMMENTS:
1.Purpose . In August 2013, the Governor's Office of Business
and Economic Development (GO-Biz) identified an "impediment"
in the Vehicle Code relating to moving unregistered new
trailers manufactured in this state. While California's
one-trip permits are valid for five days, Go-Biz maintains
that many other states have much longer permit periods. The
DMV reports that it does not commonly issue one-trip permits
for trailers because trailers are rarely manufactured and sold
new in California for delivery in another state. The author
notes that the five-day permit restriction "may very well be a
contributing reason California doesn't have a large presence
of semi-truck trailer manufacturers." The author states that
by increasing the one-trip permit period to 10 days, this bill
will increase California's prospects of attracting trailer
manufacturers to the state, thereby improving opportunities
for businesses in the state as well as creating jobs.
2.What about reciprocity ? Many states have executed reciprocity
agreements with other states. These agreements allow
individuals and companies who have a permit for their own
state (e.g., California's one-trip permit) to temporarily
operate trailers and semitrailers in those states while
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traveling to their final destination, without having to stop
and pay for registration or a permit in those states. If a
reciprocity agreement does not exist between states, an
individual or company must obtain the proper permits - in
addition to the permit issued by the original state - in order
to operate in the non-reciprocity state. California has only
executed reciprocity agreements with a limited number of
states. Therefore, even if an individual or company obtained
a one-trip permit in California good for 10 days, as
established by this bill, the permit would not be recognized
by a state with which California does not hold a reciprocity
agreement.
3.How do manufacturers and companies use one-trip permits ? A
company typically obtains a one-trip permit when it purchases
a newly manufactured trailer and delivers it to a distant
location. The permit enables the company to move the trailer
immediately, rather than first moving the empty trailer from
the manufacturer to the purchaser, then registering it,
loading it, and putting it on the road.
4.Other states . At least half of states issue one-trip permits
that are similar to California's, but for a 72-hour period -
two days shorter than California's one-trip permit. Most
states also offer an alternate permit - not offered in
California - allowing an individual or company to temporarily
operate a non-registered trailer or semitrailer for a longer
period, ranging from five days (Washington) to 10 days
(Oregon) to 15 days (Texas). Some states offer temporary
registration permits for longer periods; for example, Indiana
offers a temporary registration permit that is good for 90
days. Again, California does not offer this type of permit.
When an individual or company purchases a trailer in
California, they typically obtain a one-trip permit to
transport the trailer either elsewhere in the state or outside
the state. The owner then registers the trailer in the state
of final destination, or obtains a five-year permanent trailer
identification plate in California, for a nominal fee.
5.Why now ? California's one-trip permit statute has been in
place since 1988. In recent years, the Federal Motor Carrier
Safety Administration has issued increasingly stringent
regulations regarding the number of hours that truck drivers
may be on duty. These restrictions have resulted in
cross-country trips taking longer than in prior years, making
it difficult for a company to deliver a truck from California
to distant parts of the country, such as the east coast,
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within five days.
6.Amendments . The September 6, 2013, version of this bill
extended the one-trip permit from five days to 30 days. This
extension appeared to have the unintended consequence of
enabling individuals and companies to move trailers and
semitrailers around California for an entire month on a
one-trip permit, rather than paying to register the trailer or
semitrailer. The author amended this bill on June 12, 2014,
to instead extend the one-trip permit from five days to 10
days. This compromise provides increased time for permit
holders to reach their destination while discouraging
potential abuse.
7.Background . This bill originally pertained to the University
of California, Riverside Medical School, but the author
amended it on September 6, 2013, to relate to permits.
Because of these amendments, the Senate Rules Committee
referred this bill back to this committee from the Senate
Floor for a hearing under Senate Rule 29.10. Due to concerns
expressed by this committee about approving a new bill during
the last few days of session, the author pulled this bill and
committed to work with this committee during the interim
recess. Since this bill is fiscal, if it passes this
committee, it will be referred to the Appropriations
Committee.
Assembly Votes:
Prior votes not relevant
POSITIONS: (Communicated to the committee before noon on
Wednesday, June 18,
2014.)
SUPPORT: California Manufacturers and Technology
Association
California Trucking Association
OPPOSED: None received.