BILL ANALYSIS Ó SB 806 Page 1 Date of Hearing: July 1, 2013 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair SB 806 (Hueso) - As Amended: June 14, 2013 SENATE VOTE : 36-0 SUBJECT : Department of Motor Vehicles: license plate alternatives pilot program SUMMARY : Authorizes the Department of Motor Vehicles (DMV) to conduct a pilot program to evaluate alternatives that can be used in lieu of license plates, registration stickers, and registration cards. Specifically, this bill : 1)Authorizes DMV to conduct a pilot program to evaluate alternatives to vehicle license plates, registration stickers, and registration cards. 2)Requires the California Highway Patrol (CHP) to approve any DMV-selected alternative to license plates or registration stickers and cards. 3)Requires a vendor to be responsible for the cost associated with any alternative products used in the pilot program. 4)Specifies that not more than one-half of one percent of registered vehicles may participate in the pilot program. 5)Requires the pilot program to be completed no later than January 1, 2017. EXISTING LAW : 1)Requires DMV to issue two reflectorized license plates for vehicles and specifies that: a) Each plate must display the word "California," the vehicle's registration number, and the year for which the vehicle's registration is valid, and; b) For license plates other than motorcycles, the license must be rectangular in shape, 12 inches in length, and six inches in width. SB 806 Page 2 1)Prohibits DMV from letting a contract to any nongovernmental entity for purposes of manufacturing license plates. 2)Authorizes DMV to issue one or more stickers, tabs, or other suitable devices in lieu of a license plate as specified. FISCAL EFFECT : Unknown COMMENTS : Since 1959, California law has authorized DMV to issue stickers, tabs, or other suitable devices in lieu of license plates. 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. Currently, in order 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 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. 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 DMV's website, 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 (AAA). Each year over 10 million renewals take place in DMV field offices. The author is carrying 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. The author asserts that exploring these alternatives will result in benefits to California generally and to DMV customers specifically, as the alternatives would improve efficiency and lower the cost of DMV vehicle registration services. In particular, wireless-capable devices could reduce SB 806 Page 3 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. This bill provides the necessary clarification to provide DMV the ability to evaluate cost effective alternatives to the current process. Additionally, the specifications included in this bill will allow the pilot program to effectively evaluate alternatives, such as electronic digital displays, while ensuring the proper safety provisions are in place for program participants. Suggested amendment: The bill has conflicting provisions. On one hand, it authorizes DMV to implement the pilot program yet, on the other hand, it requires that the pilot program be completed by January 2017. This conflict creates ambiguity as to whether the pilot program is permissible or is required. The bill should be amended to resolve this conflict by striking the provision that requires the pilot program to be completed by specified date. Instead, the bill should be amended to include a sunset date for the pilot program authorization. Related legislation: SB 1453 (Price) of 2010, allowed DMV to enter into a contract with a private vendor for purposes of researching, developing, acquiring, and exploring the utilization of digital electronic license plates to serve as both a vehicle identifier and mobile message display. This bill died on suspense in the Assembly Appropriations Committee. REGISTERED SUPPORT / OPPOSITION : Support Silicon Valley Leadership Group Smart Plate Mobile Sacramento Metropolitan Chamber of Commerce Bay Area Council Opposition None on file SB 806 Page 4 Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093