BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 516 Hearing Date: 7/7/2015
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|Author: |Mullin |
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|Version: |6/30/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Randy Chinn |
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SUBJECT: Vehicles: temporary license plates
DIGEST: This bill requires the Department of Motor Vehicles
(DMV) to create a process to issue temporary license plates
(TLPs) by January 1, 2018, and requires dealers to attach TLPs
to all unplated vehicles when they are sold beginning January 1,
2018.
ANALYSIS:
Existing law:
1)Requires dealers, when selling a vehicle, to use the
report-of-sale forms issued by the DMV, to give written notice
of the sale to the DMV not later than the fifth calendar day
after the sale, and to display a copy of the report of sale on
the vehicle.
2)Permits vehicles displaying a copy of the report-of-sale to be
operated until the license plates are received by the
purchaser or for 90 days, whichever occurs first. The penalty
for failing to display the plate is a fix-it ticket.
3)Authorizes dealers to charge document preparation fees of $80
for new cars and $65 for used cars.
This bill:
1)Requires the DMV, by January 1, 2018, to develop a system for
AB 516 (Mullin) Page 2 of ?
electronically reporting vehicle sales before the vehicle is
delivered to the purchaser and for issuing TLPs.
2)Requires dealers, by January 1, 2018, to affix the TLP to the
automobile at the time of sale.
3)Requires the DMV to recover the cost of developing the TLP
system by increasing existing fees for the recording of
notices of delinquent parking violations and delinquent toll
evasions beginning January 1, 2017.
4)Authorizes dealers, beginning January 1, 2018, to raise their
document processing fees by $10, from $80 to $90 for new cars
and from $65 to $75 for used cars.
COMMENTS:
Purpose. The author is concerned that current law allows
thousands of vehicles to drive on our roads with no license
plate, creating a public safety hazard and reducing toll revenue
by $15 million per year as a result of vehicles without plates
using toll roads and bridges without payment.
Electronic toll payment collection systems rely upon a photo of
the vehicle's license plate for enforcement. Without a plate,
vehicles are able to use toll lanes and toll bridges without
much fear of getting caught. Because cars are often sold
without plates, and it is legal to operate without plates for 90
days, transportation agencies are concerned about revenue
losses. The Metropolitan Transportation Commission estimates
that it loses $9 million annually in unpaid tolls, with
statewide losses of $15 million.
Other supporters emphasize that having licenses on all vehicles
will improve public safety, allowing law enforcement to more
quickly and safely identify vehicles. They note that 35 states
have temporary license plate programs.
Winners and losers. The major beneficiaries of this bill are
tolling agencies, which will recoup tens of millions of dollars
in lost revenue. The major losers are the toll evaders, who
will now have to pay like everyone else. But this bill also
creates costs for all car buyers, who will pay an additional $10
to cover the costs incurred by car dealers to implement the TLP
system. If the goal is to stop cheating on toll roads and toll
AB 516 (Mullin) Page 3 of ?
bridges, an alternative, simpler, more quickly implemented
solution would be to increase patrols of these facilities. The
California Highway Patrol could be contracted to enforce the
laws, perhaps with an increased penalty for non-compliance,
without increasing costs to anyone except the law breakers.
Electronic reporting of sales. The provision in the bill
requiring the development of an electronic reporting of sales
(ROS) process by January 1, 2018, was suggested by the DMV. The
ROS process would also result in the creation of a TLP, adding
efficiencies for vehicle dealers, other retailers, and the DMV
by eliminating the existing paper process. Given the state's
uneven record with technology procurement, the progress of this
project will need to be followed closely.
Opposition. Opponents are concerned that the bill unfairly
penalizes consumers by making it illegal for them to drive their
cars without permanent plates after 90 days, even if the failure
to receive those plates was not the consumers' fault. Current
law already makes it illegal to operate a vehicle for more than
90 days without a permanent plate. But the TLP required by this
bill will likely have an expiration date, making it easier to
enforce the 90-day limit. Therefore, this bill increases the
likelihood that a driver could be pulled over and cited for a
failure to have permanent plates. It seems reasonable to allow
for an exemption to the 90-day limit in cases where the driver
has not received permanent plates through no fault of her own.
Double referred. This bill is also referred to the Senate
Public Safety Committee.
Related Legislation:
AB 2197 (Mullin, 2014) - similar to this bill, established a TLP
program. This bill was held in the Assembly Appropriations
Committee.
Assembly Votes:
Floor: 74-1
Appr: 12-0
Trans: 16-0
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: Yes
AB 516 (Mullin) Page 4 of ?
POSITIONS: (Communicated to the committee before noon on
Wednesday,
July 1, 2015.)
SUPPORT:
California Association of Highway Patrolmen
California Lien Agents Association
California Police Chiefs Association
California State Sheriff's Association
City/County Association of Governments of San Mateo County
Golden Gate Bridge Highway and Transportation District
Metropolitan Transportation Commission
San Diego Association of Governments
San Francisco County Transportation Authority
Santa Clara Valley Transportation Authority
Solano Transportation Authority
Transportation Authority of Marin
OPPOSITION:
California Rural Legal Assistance Foundation
Consumers for Auto Reliability and Safety
Kemnitzer, Barron & Krieg, LLP
Lawyers Committee for Civil Rights of the San Francisco Bay Area
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