BILL ANALYSIS �
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