BILL ANALYSIS Ó
SB 806
Page 1
Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 806 (Hueso) - As Amended: July 3, 2013
Policy Committee:
TransportationVote:14-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill, as proposed to be amended , authorizes the DMV to
establish a pilot program for alternatives to stickers, tabs,
license plates, and registration cards. Specifically, this bill:
1)Requires any alternative products to be approved by the CHP
and to be provided at no cost to the state.
2)Limits the pilot program to 0.5% of registered vehicles.
3)Requires any pilot established by the DMV to be completed by
January 1, 2017.
4)Makes participation by vehicle owners voluntary.
5)Limits the exchange of data between the DMV and a product
provider to that necessary to display evidence of registration
compliance, and prohibits the DMV from receiving and retaining
information regarding the movement, location, or use of a
participating vehicle.
6)Requires the DMV to provide the Legislature a specified report
on the results of the program by July 2018, including
recommendations for any subsequent actions to be implemented.
FISCAL EFFECT
Minor absorbable costs (less than $50,000) for the DMV to
administer the pilot program and complete the evaluation report.
(See Comment #2.)
SB 806
Page 2
COMMENTS
1)Background . Prior to 1959, DMV issued vehicles new license
plates each year. Since 1959, the department has issued
license plates when the owner first registered a vehicle and
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. The owner can remit annually registration
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. Postage costs associated with
vehicle licensing and registration exceed $20 million
annually.
2)Purpose . The author is carrying this bill to facilitate DMV's
ability to explore alternatives to the above process. The
author contends that exploring these alternatives, in
particular, wireless-capable devices, could reduce DMV
processing and mailing expenditures.
In February, the DMV issued a request-for-information (RFI) to
receive vendor input regarding replacement alternatives for
traditional metal license plates and registration stickers. At
the time of this analysis, the department was awaiting
approval to enter into agreement for a no-cost contract with
the selected bidder.
3)Prior Legislation . In 2010, SB 1453 (Price), which 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, was held
on this committee's Suspense file.
4)Amendments . In order to address privacy concerns and to
provide the Legislature with an evaluation of the program, the
author is proposing the following amendments-described in
Summary #4 through #6 above. On page 2, after line 21:
(5) Any pilot program established by the department pursuant
to this subdivision shall be limited to vehicle owners that
have voluntary chosen to participate.
SB 806
Page 3
(c) In the conduct of any pilot undertaken pursuant to this
section, data exchanged between the department and any
electronic device or the provider of any electronic device
must be limited to that data necessary to display evidence of
registration compliance. The department may not receive or
retain any information regarding the movement, location, or
use of a participating vehicle.
(d) If the department conducts the pilot program authorized in
subdivision (b), the department shall, by July 1, 2018, submit
a report on the results of the pilot program to the
Legislature. The report shall include, but not be limited to,
all of the following:
(1) An evaluation of the cost-effectiveness of the
alternatives used in the pilot program when compared to the
department's current use of stickers, tabs, license plates and
registration cards.
(2) A review of all products evaluated in the pilot program
and of the features of those products; including, but not
limited to, the ability of the product to transmit and retain
information relating to the movement, location, or use of a
vehicle.
(3) Recommendations for subsequent actions, if any, that
should be implemented with regard to alternatives used in the
pilot program.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081