BILL ANALYSIS �
SB 806
Page 1
SENATE THIRD READING
SB 806 (Hueso)
As Amended August 15, 2013
Majority vote
SENATE VOTE :36-0
TRANSPORTATION 14-1 APPROPRIATIONS 15-2
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|Ayes:|Lowenthal, Linder, |Ayes:|Gatto, Harkey, Bocanegra, |
| |Achadjian, Ammiano, | |Bradford, Ian Calderon, |
| |Bloom, Bonta, Buchanan, | |Campos, Eggman, Gomez, |
| |Daly, Gordon, Holden, | |Hall, Holden, Linder, |
| |Morrell, Nazarian, | |Pan, Quirk, Wagner, Weber |
| |Patterson, Quirk-Silva | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gatto |Nays:|Bigelow, Donnelly |
| | | | |
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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)Provides DMV the authorization to establish a pilot program as
specified, until no later than January 1, 2017.
6)Specifies that all pilot program participants shall
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participate in the program on a voluntary basis.
7)Limits the amount of data that can be exchanged between DMV
and the electronic device used in the program or the provider
of any electronic device to the necessary data to display
evidence of registration compliance. Specifies DMV may not
receive or retain any information pertaining to the movement,
location, or use of a participating vehicle.
8)Requires that if DMV conducts a pilot program pursuant to the
provisions in this bill, DMV shall submit a report to the
Legislature by July 1, 2018, as specified.
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.
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 : According to the Assembly Appropriations
Committee, minor absorbable costs (less than $50,000) for the
DMV to administer the pilot program and complete the evaluation
report.
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.
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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 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
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, this bill was amended in the
Assembly Appropriations Committee to address recently publicized
privacy concerns and also to provide the Legislature with an
evaluation of the program. This evaluation will include, but
not be limited to: 1) an evaluation on the cost-effectiveness
of the alternatives used in the pilot program, 2) a review of
all the products used in the pilot program and their features
and, 3) recommendations for subsequent actions.
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
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died on suspense in the Assembly Appropriations Committee.
Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093
FN: 0001701