BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1429 (Nielsen) - Vehicles
          
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          |Version: March 28, 2016         |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 16, 2016      |Consultant: Mark McKenzie       |
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          This bill does not meet the criteria for referral to the  
          Suspense File.



          Bill  
          Summary:  SB 1429 would expand eligibility for the "year of  
          manufacture" license plate program to include vehicles that are  
          1980 model-year or older.


          Fiscal  
          Impact:  
           One-time Department of Motor Vehicles (DMV) programming costs  
            of up to $100,000.  (Motor Vehicle Account)

           Minor ongoing DMV administrative costs to process applications  
            would be offset by additional applications fees.  (Motor  
            Vehicle Account)


          Background:  Existing law authorizes DMV to issue "year-of-manufacture"  
          (YOM) license plates for vehicles with a model year of 1969 or  







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          earlier and commercial vehicles or pickup trucks with a model  
          year of 1972 or older.  The program enables the owners of  
          eligible vehicles to replace their reflectorized license plates  
          with plates that were in use when the vehicle was manufactured.   
          Under the program, a vehicle owner acquires and installs the  
          appropriate set of license plates that correspond to the  
          vehicle's model year, if the DMV deems the set serviceable,  
          legible, and authentic.  An additional fee of $45 is charged for  
          the issuance of these historical plates and renewal costs an  
          additional $10.  

          Early California license plates had many different plate  
          background and character color combinations, but in 1963 all  
          existing plates were replaced with yellow characters on a black  
          background.  These plates were issued to both passenger and  
          commercial vehicles through 1969, but DMV continued to issue  
          yellow-on-black plates for commercial vehicles and pickup trucks  
          until 1972.  DMV began issuing yellow-on-blue plates beginning  
          in 1970, but switched to blue-on-white plates in the 1980s.   
          Under the current YOM program, most participating vehicles  
          display black-on-yellow plates issued from 1956-62 and the  
          yellow-on-black plates issued thereafter.  

          The DMV also issues new reflectorized yellow-on-black plates to  
          any vehicle under the Legacy License Plate Program, upon payment  
          of specified fees, pursuant to AB 1658 (Gatto), Chapter 720 of  
          2012.


          Proposed Law:  
            SB 1429 would expand the current YOM license plate program to  
          authorize the owner of a vehicle that is a 1980 or older  
          model-year vehicle to participate in the program.


          Staff  
          Comments:  Participants in the YOM program pay the standard  
          vehicle registration fee, in addition to an initial YOM  
          application fee of $45 and an annual renewal fee of $10.  DMV  
          programming is required to flag the individual records of YOM  
          license plate holders in order to collect the additional renewal  
          fees.  Programming costs are not expected to exceed $100,000.   
          There are currently 32,324 participants in the YOM program, and  
          it is unknown how many additional requests for YOM plates this  








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          bill would generate.  The increased application fees would  
          offset the costs for processing applications under the expanded  
          program, and for any other minor ongoing administrative costs.


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