BILL ANALYSIS �
SB 806
Page 1
SENATE THIRD READING
SB 806 (Hueso)
As Amended August 30, 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 participate in
the program on a voluntary basis.
SB 806
Page 2
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. 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.
SB 806
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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 and the
products' security features used in the pilot program and, 3)
recommendations for subsequent actions.
Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093
FN: 0001958