BILL ANALYSIS
SB 1453
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1453 (Price) - As Amended: August 2, 2010
Policy Committee:
TransportationVote:8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill allows the Department of Motor Vehicles (DMV) to
contract with a private vendor to explore the use of electronic
vehicle license plates. Specifically, the bill:
1)Allows DMV to contract with a vendor for the purpose of
purposes of researching, developing, acquiring, and exploring
the utilization of a digital electronic license plate.
2)Requires that, if DMV enters into such a contract, it report
to the Legislature on the result of the investigation by
January, 2013. The report would be required to include
information on how the plates could be used, the effects on
traffic safety, potential revenues and cost savings that could
be generated, and security and reliability of the digital
electronic license plates.
FISCAL EFFECT
The bill requires that the cost of the contract with the private
vendor be borne by the vendor. However, DMV and the California
Highway Patrol would incur time and expense developing the
subsequent report to the Legislature. The exact magnitude of
these costs is unknown, but could exceed $150,000.
COMMENTS
1)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. At
least one company, Smart Plate, is in the process of
SB 1453
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developing such a plate. The plate would access messages from
a "computing cloud" or other wireless network. Thus,
information could be transmitted from the DMV or other
sources. Such plates could be used to reduce costs of
registration and renewal, to facilitate usage of additional
special interest plate designs, as well as for commercial
purposes.
2)Purpose . The bill is intended to authorize DMV to work with
Smart Plate or other companies to investigate the creation and
use of this type of license plate, and to report to the
Legislature on that investigation. According to the author,
the goal is to produce a revenue stream for both the plate
manufacturers and DMV while providing vehicle owners the
opportunity to display messages of support for organizations
they favor and/or earn rewards from commercial interests.
3)Issue . There is nothing in existing law prohibiting DMV from
studying new technologies and products that would help the
state achieve efficiencies and cost-savings. The question
posed by this bill is whether a vendor-financed study would
provide an objective basis for such an evaluation.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081