BILL ANALYSIS Ó
SB 1399
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Date of Hearing: June 13, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SB
1399 (Hueso) - As Amended April 26, 2016
SENATE VOTE: 36-0
SUBJECT: Department of Motor Vehicles: license plate
alternatives pilot program
SUMMARY: Extends the sunset on an existing Department of Motor
Vehicles (DMV) pilot program evaluating alternatives to license
plates, registration stickers, and registration cards from
January 1, 2017, to January 1, 2019, and the deadline for DMV to
report on the pilot to the Legislature from July 1, 2018, to
July 1, 2020.
EXISTING LAW:
1)Requires DMV to issue two reflectorized license plates for
vehicles and specifies that:
a) Each plate must display the word "California," the
vehicle's registration number, and the year for which the
vehicle's registration is valid, and;
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b) For license plates other than motorcycles, the license
must be rectangular in shape, 12 inches in length, and six
inches in width.
2)Prohibits DMV from letting a contract to any non-governmental
entity for purposes of manufacturing license plates.
3)Authorizes DMV to issue one or more stickers, tabs, or other
suitable devices in lieu of a license plate as specified.
4)Authorizes DMV to conduct a pilot program to evaluate
alternatives to vehicle license plates, registration stickers,
and registration cards until no later than January 1, 2017,
and requires DMV to report on the results of the pilot program
to the Legislature no later than July 1, 2018.
5)Requires the Department of the California Highway Patrol to
approve any DMV-selected alternative to license plates or
registration stickers and cards.
6)Requires a vendor to be responsible for the cost associated
with any alternative products used in the pilot program.
FISCAL EFFECT: Unknown
COMMENTS: DMV has issued license plates and registration
stickers since 1959. Currently, in order to register a vehicle,
the registered owner must submit proof of insurance, pay
registration and other fees, and when required, provide proof
that the vehicle passed a smog check inspection. DMV then
issues, typically by mail, a vehicle registration card and the
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appropriate sticker for the vehicle's rear license plate. 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 DMV's website, 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 (AAA). DMV registers 33 million vehicles annually,
with over 10 million renewals taking place in DMV field offices
each year.
In 2013, the Legislature passed and the Governor signed SB 806
(Hueso), Chapter 569, Statutes of 2013, authorizing DMV to
establish a pilot program to evaluate the use of alternatives to
license plates, registration stickers, and registration cards.
At the time, that bill's author sought to facilitate DMV's
ability to explore alternatives to the traditional metal license
plate, plastic-coated registration stickers, and paper
registration cards in order to improve efficiency and lower the
cost of DMV vehicle registration services.
Since the enactment of SB 806, DMV has developed specifications
and completed procurements for each of the three authorized
alternatives. The procurement process ran longer than was
anticipated when SB 806 was initially considered, and field
testing for some of the technologies by the contracted vendors
did not begin until as late as November 2015. Due to the
abbreviated nature of the testing window, the vendors carrying
out the pilot are seeking to extend the pilot's authorization.
The author believes that by extending the authorization by two
years, the vendors will have ample time to complete their
testing as well as account for any additional delays. The
additional time to conduct the pilot will allow the vendors to
expand field testing and collect additional, more extensive data
to share with DMV, which will then be reported by the department
to the Legislature to assist in determining the viability of
these technologies for future use.
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Because existing statute merely authorizes DMV to establish a
pilot but does not require the department to purchase any
technology from the vendors, the extension of the pilot would
not require extending or renegotiating any contracts that would
result in costs to DMV.
Previous legislation: SB 806 (Hueso), Chapter 569, Statutes of
2013, authorized DMV to conduct a pilot program to evaluate
alternatives to license plates, registration stickers, and
registration cards.
REGISTERED SUPPORT / OPPOSITION:
Support
ReviverMX (Sponsor)
Motor Vehicle Software Corporation
Opposition
None on file
SB 1399
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Analysis Prepared by:Justin Behrens / TRANS. / (916)
319-2093