BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1453 (Price)
Hearing Date: 05/17/2010 Amended: 05/13/2010
Consultant: Mark McKenzie Policy Vote: T&H 7-0
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BILL SUMMARY: SB 1453 would authorize the Department of Motor
Vehicles (DMV) to evaluate the feasibility of using digital
electronic license plates. Specifically, this bill would
authorize DMV to contract with a private vendor to research,
report, develop, acquire, and explore the utilization of these
plates and report findings to the Legislature by January 1,
2013. The private vendor would be required to pay for costs
related to the report through a direct contract with DMV.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
DMV research/report $50 $100 $50 Special*
(see staff comments and
recommended amendments)
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* Motor Vehicle Account
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STAFF COMMENTS:
Existing law requires DMV to issue to each vehicle upon initial
registration two reflectorized license plates or devices to
identify the vehicle. The plates must display the word
"California," a registration number, and the year for which its
registration is valid. Existing law prohibits DMV from letting
a contract to any nongovernmental entity for purposes of
manufacturing license plates.
This bill authorizes DMV to consider the use and development of
existing or emerging technologies for the creation of a digital
electronic license plate for the purpose of generating revenue
for DMV and the state. The bill defines "digital electronic
license plate" as a license plate that meets the appearance
requirements for license plates and may be used secondarily as a
mobile message display unit. DMV would be authorized to
contract with a private vendor to conduct investigations on the
feasibility of using these plates. The bill would also require
DMV to submit a report to the Legislature on the investigation
into the potential for utilization of digital electronic license
plates that would include the following: an explanation of how
the plates would function as a vehicle identifier and a mobile
message display; effects of the plates on traffic safety;
identification of any revenues or cost savings that could be
achieved; security and reliability of the plates; and
recommendations on the future use of the plates.
DMV indicates that the investigations into the use of electronic
license plates could result in staff costs of around $200,000
over two years, and may require some market research consulting
contracts as well. The bill provides permissive authority for
DMV to consider the use of electronic plates, and specifies that
a private vendor who contracts with DMV would pay costs related
to the Legislative report. Staff notes that the
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SB 1453 (Price)
author's office indicates that their intention is for the
private vendor to pay all costs associated with the
investigation into the feasibility of utilizing digital
electronic license plates. In order to ensure all costs related
to the researching, reporting, developing, acquiring, and
exploring the utilization of these plates, staff recommends the
following amendment:
Delete paragraph (2) or subdivision (d) of Section 1656.6
of the Vehicle Code on page 3 of the bill and insert the
following:
(2) The private vendor shall pay for the costs
identified by the department as part of the contract
entered into pursuant to subdivision (c).
Background
Digital electronic license plates look and function like a
computer screen that displays a facsimile of a license plate,
but is capable of displaying other images when the vehicle is
not moving. One company, Smart Plate, indicates it holds a
patent on its digital electronic license plate, which would take
on the size and appearance of a standard California license
plate (i.e., a 12" by 6" white, reflectorized rectangle with
blue characters and "California" in red across the top) when a
vehicle is moving. Once a vehicle comes to a stop for four
seconds or longer, such as at a stoplight or in a traffic jam,
the image on the plate would be replaced with a scrolling set of
messages that the driver selects from a menu of options,
including advertisements for private businesses, educational
institutions, or other organizations that would enter into
contracts with DMV to display their messages on these plates.
Vehicle owners could choose which messages to display based on
their preferences, affiliations, and perhaps rewards from those
businesses or organizations. In addition, a driver would be
able to control which messages actually display when he or she
is driving via a web-based control system. The plate would
access messages from a computing cloud or other wireless network
rather than an on-board or on-plate chip.