BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 806
Author: Hueso (D)
Amended: 8/30/13
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 4/30/13
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 36-0, 5/20/13
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Evans, Fuller, Gaines,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,
Knight, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Pavley,
Roth, Steinberg, Torres, Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Emmerson, Lara, Price, Vacancy
ASSEMBLY FLOOR : 73-3, 9/3/13 - See last page for vote
SUBJECT : License plates
SOURCE : Author
DIGEST : This bill allows the Department of Motor Vehicles
(DMV) to conduct a pilot project to test devices that would
serve as alternatives to license plates, registration stickers,
and registration cards.
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Assembly Amendments (1) specify that all pilot program
participants shall participate in the program on a voluntary
basis, (2) limit 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, (3) specify DMV may
not receive or retain any information pertaining to the
movement, location, or use of a participating vehicle, and (4)
require 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.
ANALYSIS : Existing law requires DMV to issue to each vehicle
upon initial registration two reflectorized license plates or
devices to identify the vehicle. Existing law prescribes the
appearance of these plates as follows:
1.Each plate must display the word "California" plus the
vehicle's registration number and the year for which its
registration is valid.
2.Plates, other than those for motorcycles, must be rectangular
in shape, 12 inches in length and 6 inches in width.
Existing law prohibits DMV from letting a contract to any
nongovernmental entity for purposes of manufacturing license
plates.
Since 1959, California law has authorized DMV to issue stickers,
tabs, or other suitable devices in lieu of license plates, as
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.
This bill:
1.Authorizes DMV to conduct a pilot program to evaluate
alternatives to vehicle license plates, registration stickers,
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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.
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.
Background
The author introduced 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. He believes 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.
Exploring savings to DMV . To register a vehicle, the registered
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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 typically 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.
DMV registers approximately 26 million vehicles per year and
collects approximately $3.7 billion in renewal fees. 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 owner can remit fees and
required documentation by mail, via the DMV's Internet Web site,
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. Each year over 10 million renewals take place in
DMV field offices.
This pilot project would allow DMV to try out, for example, a
digital electronic plate (see next comment), for which DMV could
electronically and directly to the plate issue updated
"stickers" and an electronic registration card.
Digital electronic plates . A supporter of this bill is Smart
Plate Mobile, a company that holds a patent on a digital
electronic license plate, which is essentially a computer screen
that can take on the size and appearance of a standard
California license plate (i.e., a 12" by 6" white, reflectorized
rectangle with blue characters and "California" in red across
the top). This product also allows that screen, once a vehicle
comes to a stop for four seconds or longer, to display a
different image on the plate such as an advertisement. This
bill does not authorize the display of anything other than the
existing California license plate on a screen, but thus far it
appears that Smart Plate is the company most interested in
participating in such a pilot project. Smart Plate has offered
to make its product available to DMV to test.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, minor
absorbable costs (less than $50,000) for the DMV to administer
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the pilot program and complete the evaluation report.
SUPPORT : (Verified 5/13/13 -- unable to reverify at time of
writing)
Bay Area Council
Sacramento Metropolitan Chamber of Commerce
ASSEMBLY FLOOR : 73-3, 9/3/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Harkey, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Linder, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,
Nazarian, Nestande, Pan, Patterson,
Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas,
Skinner, Stone, Ting, Wagner, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. P�rez
NOES: Donnelly, Levine, Waldron
NO VOTE RECORDED: Hall, Olsen, Vacancy, Vacancy
JA:ej 9/3/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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