BILL ANALYSIS Ó 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 ----------------------------------------------------------------- |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 | | | | | | ----------------------------------------------------------------- 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 SB 806 Page 2 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. SB 806 Page 3 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 SB 806 Page 4 died on suspense in the Assembly Appropriations Committee. Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093 FN: 0001701