BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 516 (Mullin) - Vehicles: temporary license plates
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|Version: July 16, 2015 |Policy Vote: T. & H. 10 - 0, |
| | PUB. S. 5 - 2 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 24, 2015 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 516 would require the Department of Motor Vehicles
(DMV) to develop a system for vehicle dealers to report vehicle
sales electronically by January 1, 2018, and require the system
to produce a temporary license plate (TLP) that must be affixed
to the vehicle prior to delivery to the purchaser or lessee.
The bill would authorize DMV to adjust the fees for recording a
notice of delinquent parking and toll evasion violations as of
January 1, 2017 to cover costs to administer the system. The
bill would also authorize dealers to increase existing document
processing charges by $10 on each vehicle transaction.
Fiscal
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Impact:
One-time DMV costs of approximately $2.4 million in 2016-17 to
develop and implement an automated vehicle report-of-sale
(ROS) process, and ongoing costs of approximately $700,000
annually thereafter, offset by administrative savings of
$920,000 annually, beginning January 1, 2018. As a result,
DMV would have net costs of $260,000 in 2017-18, and net
savings of $220,000 annually thereafter. (Motor Vehicle
Account)
Unknown fee revenue gains to DMV beginning January 1, 2017
related to the authorization to adjust the fees for recording
notices of parking and toll evasion violations. DMV expects
to adjust the fees in an amount sufficient to offset costs to
develop the ROS system. (Motor Vehicle Account)
Unknown, potentially significant local toll revenue gains
related to reduced toll evasion as a result of the requirement
for dealers to affix a TLP at the time of a vehicle
transaction. (local funds)
Background: Existing law requires vehicle dealers and lessor-retailers to
use numbered ROS forms issued by DMV when selling a vehicle, to
give written notice of the sale to DMV not later than the fifth
calendar day after the sale, and to display a copy of the report
of sale on the vehicle. Existing law authorizes the operation
of a vehicle without license plates or a registration card if
the vehicle is displaying a copy of the ROS for 90 days
following a purchase or until the license plates are received by
the purchaser, whichever occurs first. The penalty for failure
to display a license plate is a fix-it ticket.
Existing law authorizes vehicle dealers to charge a document
processing charge on the purchase or lease of a vehicle for the
preparation and processing of documents, disclosures, and
titling, registration, and information security obligations
imposed by state and federal law. If a dealer has a contractual
agreement with DMV to be a private industry partner, the
document processing charge cannot exceed $80, otherwise the
charge is a maximum of $65.
Existing law makes the altering, forging, counterfeiting, or
falsification of a certificate of ownership, registration card,
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or license plate (among other documents) a "jail wobbler,"
punishable by imprisonment for 16 months, or two or three years,
or by imprisonment in a county jail for not more than one year.
Proposed Law:
AB 516 would require DMV to develop a system for vehicle
dealers to report vehicle sales electronically by January 1,
2018. Specifically, this bill would:
Authorize DMV to contract with private industry partners for
services related to reporting vehicle sales and producing
TLPs.
Require DMV to develop and implement an electronic ROS system
by January 1, 2018 that conforms to specified conditions,
including a requirement that the system produce a TLP to be
used and displayed in lieu of license plates, for vehicles
that do not already display plates.
Require the TLP to display a unique ROS number and an
expiration date.
Require dealers to report vehicle sales using the electronic
ROS system, effective January 1, 2018, and then affix a TLP
issued by the system, if the vehicle does not display license
plates previously issued by DMV.
Require the TLP to be displayed until the permanent plates are
received by the purchaser, or 90 days have passed since the
vehicle sale, whichever is sooner, and requires TLPs to be
replaced by the permanent plates and subsequently destroyed.
Authorize the display of a TLP for longer than 90 days if the
owner has not received permanent plates and submits proof that
an application was submitted to DMV.
Authorize DMV to adjust the fee assessed for the recording of
a notice of delinquent parking or toll evasion violations,
beginning January 1, 2017, to provide for its costs of
administering the ROS system.
Authorize vehicle dealers to increase the document processing
charge by $10, beginning January 1, 2018, to a maximum of $90
for new vehicle purchases and to $75 for used vehicle
purchases.
Authorize a specified electronic filing charge that dealers
charge a purchaser or lessee to include the actual amount a
dealer is charged by a first line provider for providing
services related to reporting vehicle sales and producing
TLPs.
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Make the altering, forging, counterfeiting, or falsification
of a TLP a "jail wobbler."
Related
Legislation: AB 2197 (Mullin), which was held on the Assembly
Appropriations Committee Suspense File last year, would have
required vehicles sold or leased without a permanent license
plate to be affixed with a TLP.
Staff
Comments: This bill is intended to address problems associated
with toll evasion by vehicles that do not have license plates.
The bill also increases efficiencies by requiring all dealer
vehicle sales to be performed through an electronic ROS process,
rather than recording vehicle sales through paper forms.
DMV indicates that costs to develop the electronic ROS system
would be about $2.4 million in 2016-17, with ongoing
administrative costs of approximately $700,000 annually
thereafter. The department would increase the administrative
service fees charged to parking authorities and toll operators
for the collection of unpaid fines through DMV in order to
recover costs associated with developing and implementing the
electronic ROS and TLP system. Managing transactions
electronically would eliminate current DMV costs for printing,
shipping and handling, and manual keying of record of sale
forms, resulting in annual ongoing savings of $920,000 upon full
implementation.
Recommended
Amendments: Staff notes that both this bill and AB 605 (Gatto)
amend Vehicle Code § 4456.5. Both bills will require amendments
to avoid chaptering conflicts.
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