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