BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1429 (Nielsen) - Vehicles ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 28, 2016 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 16, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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 SB 1429 (Nielsen) Page 1 of ? 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 SB 1429 (Nielsen) Page 2 of ? 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. -- END --