BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 806
Author: Price (D)
Amended: 4/23/13
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 4/30/13
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : License plates
SOURCE : Author
DIGEST : This bill allows the Department of Motor Vehicles
(DMV) to conduct a pilot project to test devices that would
serve as alternatives to license plates, registration stickers,
and registration cards.
ANALYSIS : Existing law requires DMV to issue to each vehicle
upon initial registration two reflectorized license plates or
devices to identify the vehicle. Existing law prescribes the
appearance of these plates as follows:
1.Each plate must display the word "California" plus the
vehicle's registration number and the year for which its
registration is valid.
2.Plates, other than those for motorcycles, must be rectangular
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in shape, 12 inches in length and 6 inches in width.
Existing law prohibits DMV from letting a contract to any
nongovernmental entity for purposes of manufacturing license
plates.
Since 1959, California law has authorized DMV to issue stickers,
tabs, or other suitable devices in lieu of license plates, as
prior to 1959, DMV issued vehicles new license plates each year.
Since 1959, however, DMV has issued a vehicle license plates
when the owner first registered it and then annually provides a
sticker (or in the past a metal tab) to show that the owner has
renewed the vehicle's registration for the current year. DMV
also provides the vehicle owner with a registration card to show
that the vehicle is currently registered. DMV has never
exercised its authority to establish devices in lieu of license
plates.
This bill authorizes DMV to establish a pilot program to
evaluate alternatives to vehicle license plates, registration
stickers, and registration cards provided that the pilot project
meets the following requirements:
1.The California Highway Patrol approves any alternative to
license plates or registration stickers and cards.
2.An entity other than the state shall provide the alternatives
to the license plate and registration cards and stickers at no
cost to the state.
3.No more than half a percent of vehicles registered in the
state may participate in the pilot project. (This equates to
about 160,000 vehicles.)
4.DMV must complete the pilot project by January 1, 2017.
Background
Purpose . The author introduced this bill to facilitate DMV's
ability to explore alternatives to California's traditional
metal license plate, plastic-coated registration stickers, and
paper registration cards. He believes that exploring these
alternatives will result in benefits to California generally and
to DMV customers specifically, as the alternatives would improve
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efficiency and lower the cost of DMV vehicle registration
services. In particular, wireless-capable devices could reduce
DMV processing and mailing expenditures. Vehicle owners,
particularly fleet owners, could eliminate the need to receive
physical registration tags from DMV by mail that they then must
affix to their vehicles.
Exploring savings to DMV . To register a vehicle, the registered
owner must submit proof of insurance, pay registration and other
fees, and when required, provide proof that the vehicle passed a
smog check inspection. (Smog checks are typically required
every other year for motor vehicles that are at least six years
old.) DMV then issues - typically by mail - a vehicle
registration card and the appropriate sticker for the vehicle's
rear license plate.
DMV registers approximately 26 million vehicles per year and
collects approximately $3.7 billion in renewal fees. For annual
renewal of a vehicle registration, DMV mails the registered
owner a notice and reply envelope approximately 60 days prior to
the vehicle's renewal date. The owner can remit fees and
required documentation by mail, via the DMV's Internet Web site,
in person at a DMV field office, or at the office of one of
DMV's private industry partners, such as the American Automobile
Association. Each year over 10 million renewals take place in
DMV field offices.
This pilot project would allow DMV to try out, for example, a
digital electronic plate (see next comment), for which DMV could
electronically and directly to the plate issue updated
"stickers" and an electronic registration card.
Digital electronic plates . A supporter of this bill is Smart
Plate Mobile, a company that holds a patent on a digital
electronic license plate, which is essentially a computer screen
that can take on the size and appearance of a standard
California license plate (i.e., a 12" by 6" white, reflectorized
rectangle with blue characters and "California" in red across
the top). This product also allows that screen, once a vehicle
comes to a stop for four seconds or longer, to display a
different image on the plate such as an advertisement. This
bill does not authorize the display of anything other than the
existing California license plate on a screen, but thus far it
appears that Smart Plate is the company most interested in
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participating in such a pilot project. Smart Plate has offered
to make its product available to DMV to test.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/13/13)
Bay Area Council
Sacramento Metropolitan Chamber of Commerce
JA:ej 5/14/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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