BILL NUMBER: AB 1864	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 26, 2014
	AMENDED IN SENATE  JUNE 15, 2014

INTRODUCED BY   Assembly Member Daly

                        FEBRUARY 19, 2014

   An act to amend Section 4456 of, and to add and repeal Section
1687 of, the Vehicle Code, relating to registration of vehicles and
certificates of title.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1864, as amended, Daly. Registration of vehicles and
certificates of title.
   Existing law allows a vehicle displaying a copy of the report of
sale to be operated without license plates or registration card until
either the license plates and registration card are received by the
purchaser, or the expiration of a 90-day period beginning with the
date of sale of the vehicle, whichever occurs first. A violation of
this provision is an infraction.
   This bill would instead allow a vehicle to be operated without
license plates or registration card until either the license plates
and registration card are received by the purchaser, or the
expiration of a 75-day period beginning with the date of sale of the
vehicle, whichever occurs first.
   By changing the definition of a crime, this bill would impose a
state-mandated local program.
   This bill would also require the Department of Motor Vehicles, in
consultation with the Department of the California Highway Patrol, to
assess the need for a temporary vehicle identification system that
is different from the process described above. The bill would require
the department, in making this assessment, to consider information
from relevant entities and the experience of other states, as
specified. The bill would require the department, if its assessment
demonstrates the need to enhance or change the existing temporary
vehicle identification system, to examine the costs and benefits of
employing different systems, as specified. The bill would require the
department to submit, no later than January 1, 2016, a report that
includes the results of the assessments and examinations described
above, as specified. The bill would require the department, in
consultation with the Department of the California Highway Patrol, to
make a recommendation in the report as to whether the state should
implement a new temporary vehicle identification system. This bill
would repeal these provisions on January 1, 2017.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1687 is added to the Vehicle Code, to read:
   1687.  (a) The department shall, in consultation with the
Department of the California Highway Patrol, assess the need for a
temporary vehicle identification system that is different from the
current practice of displaying the report of sale on a vehicle
pursuant to Section 4456. In making this assessment, the department
shall consider information from relevant entities including, but not
limited to, local government, law enforcement agencies, licensed
vehicle dealers, and consumer representatives. The department shall
also consider the experience of other states in using temporary
vehicle license plates or other alternative temporary vehicle
identification systems that are employed prior to the installation of
permanent license plates.
   (b) If the department's assessment, as specified in subdivision
(a), demonstrates the need to enhance or change the existing
temporary vehicle identification system, the department shall examine
the costs and benefits of employing different temporary vehicle
identification systems, including potential methods of paying for the
costs associated with these systems. The types of temporary vehicle
identification systems examined by the department shall include, but
not be limited to, all of the following:
   (1) An enhanced display of the report of sale on a vehicle.
   (2) A temporary license plate system that is not integrated with
the databases of the department or law enforcement.
   (3) A temporary license plate system with a database that is
accessible to the department and law enforcement.
   (4) A temporary license plate system that is fully integrated with
the department's database and the California Law Enforcement
Telecommunications System.
   (c) (1) The department shall submit, no later than January 1,
2016, a report to  the chairs of  the Assembly
Committee on Transportation and the Senate Committee on
Transportation and Housing that includes the results of the
assessment specified in subdivision (a) and the examination specified
in subdivision (b), if conducted. The department, in consultation
with the Department of the California Highway Patrol, shall make a
recommendation in the report as to whether the state should implement
a new temporary vehicle identification system.
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
   (3) Notwithstanding Section 10231.5 of the Government Code, the
requirement for submitting a report imposed by this section is
inoperative on January 1, 2017.
   (d) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
  SEC. 2.  Section 4456 of the Vehicle Code is amended to read:
   4456.  (a) When selling a vehicle, dealers and lessor-retailers
shall use numbered report-of-sale forms issued by the department. The
forms shall be used in accordance with the following terms and
conditions:
   (1) The dealer or lessor-retailer shall attach for display a copy
of the report of sale on the vehicle before the vehicle is delivered
to the purchaser.
   (2) The dealer or lessor-retailer shall submit to the department
an application accompanied by all fees and penalties due for
registration or transfer of registration of the vehicle within 30
days from the date of sale, as provided in subdivision (c) of Section
9553, if the vehicle is a used vehicle, and 20 days if the vehicle
is a new vehicle. Penalties due for noncompliance with this paragraph
shall be paid by the dealer or lessor-retailer. The dealer or
lessor-retailer shall not charge the purchaser for the penalties.
   (3) As part of an application to transfer registration of a used
vehicle, the dealer or lessor-retailer shall include all of the
following information on the certificate of title, application for a
duplicate certificate of title, or form prescribed by the department:

   (A) Date of sale and report of sale number.
   (B) Purchaser's name and address.
   (C) Dealer's name, address, number, and signature or signature of
authorized agent.
   (D) Salesperson number.
   (4) If the department returns an application and the application
was first received by the department within 30 days of the date of
sale of the vehicle if the vehicle is a used vehicle, and 20 days if
the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days from
the date of sale of the vehicle if the vehicle is a used vehicle, and
40 days if the vehicle is a new vehicle, or within 30 days from the
date that the application is first returned by the department if the
vehicle is a used vehicle, and 20 days if the vehicle is a new
vehicle, whichever is later.
   (5) If the department returns an application and the application
was first received by the department more than 30 days from the date
of sale of the vehicle if the vehicle is a used vehicle, and 20 days
if the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days from
the date of sale of the vehicle if the vehicle is a used vehicle, and
40 days if the vehicle is a new vehicle.
   (6) An application first received by the department more than 50
days from the date of sale of the vehicle if the vehicle is a used
vehicle, and 40 days if the vehicle is a new vehicle, is subject to
the penalties specified in subdivisions (a) and (b) of Section
4456.1.
   (7) The dealer or lessor-retailer shall report the sale pursuant
to Section 5901.
   (b) (1) A transfer that takes place through a dealer conducting a
wholesale vehicle auction shall be reported to the department by that
dealer on a single form approved by the department. The completed
form shall contain, at a minimum, all of the following information:
   (A) The name and address of the seller.
   (B) The seller's dealer number, if applicable.
   (C) The date of delivery to the dealer conducting the auction.
   (D) The actual mileage of the vehicle as indicated by the vehicle'
s odometer at the time of delivery to the dealer conducting the
auction.
   (E) The name, address, and occupational license number of the
dealer conducting the auction.
   (F) The name, address, and occupational license number of the
buyer.
   (G) The signature of the dealer conducting the auction.
   (2) Submission of the completed form specified in paragraph (1) to
the department shall fully satisfy the requirements of subdivision
(a) and subdivision (a) of Section 5901 with respect to the dealer
selling at auction and the dealer conducting the auction.
   (3) The single form required by this subdivision does not relieve
a dealer of any obligation or responsibility that is required by any
other provision of law.
   (c) A vehicle displaying a copy of the report of sale may be
operated without license plates or registration card until either of
the following, whichever occurs first:
   (1) The license plates and registration card are received by the
purchaser.
   (2) A 75-day period, commencing with the date of sale of the
vehicle, has expired.
   (d) This section shall become operative on July 1, 2012.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.