BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 806| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 806 Page 2 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 CONTINUED SB 806 Page 3 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 CONTINUED SB 806 Page 4 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 **** END **** CONTINUED