BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 516|
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THIRD READING
Bill No: AB 516
Author: Mullin (D), et al.
Amended: 7/16/15 in Senate
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 7/7/15
AYES: Beall, Cannella, Allen, Bates, Galgiani, Leyva, McGuire,
Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Gaines
SENATE PUBLIC SAFETY COMMITTEE: 5-2, 7/14/15
AYES: Hancock, Glazer, Leno, Liu, Monning
NOES: Anderson, Stone
SENATE APPROPRIATIONS COMMITTEE: 6-1, 8/27/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza
NOES: Nielsen
ASSEMBLY FLOOR: 74-1, 6/4/15 - See last page for vote
SUBJECT: Vehicles: temporary license plates
SOURCE: California Association of Highway Patrolmen
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:
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Existing law:
1)Requires dealers, when selling a vehicle, to use the
report-of-sale (ROS) 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 ROS
on the vehicle.
2)Permits vehicles displaying a copy of the ROS 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.
4)Makes the altering, forging, etcetera of various DMV documents
a jail wobbler.
This bill:
1)Requires the DMV, by January 1, 2018, to develop a system for
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.
5)Makes the altering, forging, etcetera of a TLP a jail wobbler.
Comments
Purpose. The author is concerned that existing law allows
thousands of vehicles to drive on our roads with no license
plate, creating a public safety hazard and reducing toll revenue
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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 TLP 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
bridges, an alternative, simpler, more quickly implemented
solution would be to increase patrols of these facilities.
Electronic reporting of sales. The provision in this bill
requiring the development of an electronic 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 oppose the increase in dealer fees.
Also, while this bill contains safeguards to ensure that car
purchasers aren't cited if they don't display their permanent
plates within 90 days because they haven't received them,
opponents are concerned that those safeguards are inadequate.
FISCAL EFFECT: Appropriation: No Fiscal
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Com.:YesLocal: Yes
According to the Senate Appropriations Committee:
One-time DMV costs of approximately $2.4 million in 2016-17 to
develop and implement an automated vehicle 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)
SUPPORT: (Verified2/11/16)
California Association of Highway Patrolmen (source)
California Lien Agents Association
California Police Chief Association, Inc.
California State Lodge, Fraternal Order of Police
California State Sheriffs' Association
City/County Association of Governments of San Mateo County
Golden Gate Bridge Highway and Transportation District
Long Beach Police Officers Association
Los Angeles County Professional Peace Officers Association
Los Angeles County Sheriff's Department
Metropolitan Transportation Commission
Sacramento County Deputy Sheriffs' Association
San Diego Association of Governments
San Francisco County Transportation Authority
Santa Clara Valley Transportation Authority
Solano Transportation Authority
Transportation Authority of Marin
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Transportation Corridor Agencies
OPPOSITION: (Verified2/24/16)
California Rural Legal Assistance Foundation
Californians United for a Responsible Budget
Car Dealers Saving Lives
Consumer Action
Consumer Federation of California
Consumers for Auto Reliability and Safety
Kemnitzer, Barron & Krieg, LLP
Lawyers' Committee for Civil Rights of the San Francisco Bay
Area
ASSEMBLY FLOOR: 74-1, 6/4/15
AYES: Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,
Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu,
Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier,
Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia,
Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley,
Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey,
Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,
Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,
Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas,
Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond,
Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NOES: Levine
NO VOTE RECORDED: Travis Allen, Brough, Dahle, Harper, Jones
Prepared by:Randy Chinn / T. & H. / (916) 651-4121
2/24/16 13:56:10
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