BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 516|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 516
Author: Mullin (D), et al.
Amended: 6/23/16 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, 2019, and requires dealers to attach TLPs
to all unplated vehicles when they are sold beginning January 1,
2019.
Senate Floor Amendments of 6/23/16 (1) delay the implementation
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Page 2
by one year, to January 1, 2019, and reduce the increase in the
document process fee to $5; and (2) also establish a 14-day
grace period for installing the permanent license plate after
they are issued to the owner.
ANALYSIS:
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, etc., of various DMV documents a
jail wobbler.
This bill:
1)Requires the DMV, by January 1, 2019, 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, 2019, to affix the TLP to the
automobile at the time of sale.
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3)Establishes a 14-day grace period for installing the permanent
license plate after they are issued to the owner.
4)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, 2018.
5)Authorizes dealers, beginning January 1, 2019, to raise their
document processing fees by $5, from $80 to $85 for new cars
and from $65 to $70 for used cars.
6)Makes the altering, forging, etcetera of a TLP a jail wobbler.
Comments
1)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 TLP programs.
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2)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 $5 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.
3)Electronic reporting of sales. The provision in this bill
requiring the development of an electronic ROS process by
January 1, 2019, 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.
4)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
Com.:YesLocal: Yes
According to the Senate Appropriations Committee:
1)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)
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2)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)
3)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: (Verified 6/27/16)
California Association of Highway Patrolmen (source)
California Lien Agents Association
California Police Chiefs 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
Transportation Corridor Agencies
OPPOSITION: (Verified6/27/16)
California Rural Legal Assistance Foundation
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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
6/29/16 15:45:44
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