BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 806
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          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.  








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          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  








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          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

           








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          Analysis Prepared by  :   Manny Leon / TRANS. / (916) 319-2093