Amended in Senate June 26, 2014

Amended in Senate June 15, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1864

Introduced by Assembly Member Daly

February 19, 2014

An act to amend Section 4456 of, and to add and repeal Section 1687 of, the Vehicle Code, relating to registration of vehicles and certificates of title.

LEGISLATIVE COUNSEL’S DIGEST

AB 1864, as amended, Daly. Registration of vehicles and certificates of title.

Existing law allows a vehicle displaying a copy of the report of sale to be operated without license plates or registration card until either the license plates and registration card are received by the purchaser, or the expiration of a 90-day period beginning with the date of sale of the vehicle, whichever occurs first. A violation of this provision is an infraction.

This bill would instead allow a vehicle to be operated without license plates or registration card until either the license plates and registration card are received by the purchaser, or the expiration of a 75-day period beginning with the date of sale of the vehicle, whichever occurs first.

By changing the definition of a crime, this bill would impose a state-mandated local program.

This bill would also require the Department of Motor Vehicles, in consultation with the Department of the California Highway Patrol, to assess the need for a temporary vehicle identification system that is different from the process described above. The bill would require the department, in making this assessment, to consider information from relevant entities and the experience of other states, as specified. The bill would require the department, if its assessment demonstrates the need to enhance or change the existing temporary vehicle identification system, to examine the costs and benefits of employing different systems, as specified. The bill would require the department to submit, no later than January 1, 2016, a report that includes the results of the assessments and examinations described above, as specified. The bill would require the department, in consultation with the Department of the California Highway Patrol, to make a recommendation in the report as to whether the state should implement a new temporary vehicle identification system. This bill would repeal these provisions on January 1, 2017.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1687 is added to the Vehicle Code, to
read:

1687.  

(a) The department shall, in consultation with the
Department of the California Highway Patrol, assess the need for
a temporary vehicle identification system that is different from the
current practice of displaying the report of sale on a vehicle
pursuant to Section 4456. In making this assessment, the
department shall consider information from relevant entities
including, but not limited to, local government, law enforcement
agencies, licensed vehicle dealers, and consumer representatives.
The department shall also consider the experience of other states
in using temporary vehicle license plates or other alternative
temporary vehicle identification systems that are employed prior
to the installation of permanent license plates.

(b) If the department’s assessment, as specified in subdivision
(a), demonstrates the need to enhance or change the existing
temporary vehicle identification system, the department shall
examine the costs and benefits of employing different temporary
vehicle identification systems, including potential methods of
paying for the costs associated with these systems. The types of
temporary vehicle identification systems examined by the
department shall include, but not be limited to, all of the following:

(1) An enhanced display of the report of sale on a vehicle.

(2) A temporary license plate system that is not integrated with
the databases of the department or law enforcement.

(3) A temporary license plate system with a database that is
accessible to the department and law enforcement.

(4) A temporary license plate system that is fully integrated
with the department’s database and the California Law
Enforcement Telecommunications System.

(c) (1) The department shall submit, no later than January 1,
2016, a report to begin delete the chairs of end delete the Assembly Committee on
Transportation and the Senate Committee on Transportation and
Housing that includes the results of the assessment specified in
subdivision (a) and the examination specified in subdivision (b),
if conducted. The department, in consultation with the Department
of the California Highway Patrol, shall make a recommendation
in the report as to whether the state should implement a new
temporary vehicle identification system.

(2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

(3) Notwithstanding Section 10231.5 of the Government Code,
the requirement for submitting a report imposed by this section is
inoperative on January 1, 2017.

(d) This section shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.

SEC. 2.  

Section 4456 of the Vehicle Code is amended to read:

4456.  

(a) When selling a vehicle, dealers and lessor-retailers
shall use numbered report-of-sale forms issued by the department.
The forms shall be used in accordance with the following terms
and conditions:

(1) The dealer or lessor-retailer shall attach for display a copy
of the report of sale on the vehicle before the vehicle is delivered
to the purchaser.

(2) The dealer or lessor-retailer shall submit to the department
an application accompanied by all fees and penalties due for
registration or transfer of registration of the vehicle within 30 days
from the date of sale, as provided in subdivision (c) of Section
9553, if the vehicle is a used vehicle, and 20 days if the vehicle is
a new vehicle. Penalties due for noncompliance with this paragraph
shall be paid by the dealer or lessor-retailer. The dealer or
lessor-retailer shall not charge the purchaser for the penalties.

(3) As part of an application to transfer registration of a used
vehicle, the dealer or lessor-retailer shall include all of the
following information on the certificate of title, application for a
duplicate certificate of title, or form prescribed by the department:

(A) Date of sale and report of sale number.

(B) Purchaser’s name and address.

(C) Dealer’s name, address, number, and signature or signature
of authorized agent.

(D) Salesperson number.

(4) If the department returns an application and the application
was first received by the department within 30 days of the date of
sale of the vehicle if the vehicle is a used vehicle, and 20 days if
the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days
from the date of sale of the vehicle if the vehicle is a used vehicle,
and 40 days if the vehicle is a new vehicle, or within 30 days from
the date that the application is first returned by the department if
the vehicle is a used vehicle, and 20 days if the vehicle is a new
vehicle, whichever is later.

(5) If the department returns an application and the application
was first received by the department more than 30 days from the
date of sale of the vehicle if the vehicle is a used vehicle, and 20
days if the vehicle is a new vehicle, the dealer or lessor-retailer
shall submit a corrected application to the department within 50
days from the date of sale of the vehicle if the vehicle is a used
vehicle, and 40 days if the vehicle is a new vehicle.

(6) An application first received by the department more than
50 days from the date of sale of the vehicle if the vehicle is a used
vehicle, and 40 days if the vehicle is a new vehicle, is subject to
the penalties specified in subdivisions (a) and (b) of Section 4456.1.

(7) The dealer or lessor-retailer shall report the sale pursuant to
Section 5901.

(b) (1) A transfer that takes place through a dealer conducting
a wholesale vehicle auction shall be reported to the department by
that dealer on a single form approved by the department. The
completed form shall contain, at a minimum, all of the following
information:

(A) The name and address of the seller.

(B) The seller’s dealer number, if applicable.

(C) The date of delivery to the dealer conducting the auction.

(D) The actual mileage of the vehicle as indicated by the
vehicle’s odometer at the time of delivery to the dealer conducting
the auction.

(E) The name, address, and occupational license number of the
dealer conducting the auction.

(F) The name, address, and occupational license number of the
buyer.

(G) The signature of the dealer conducting the auction.

(2) Submission of the completed form specified in paragraph
(1) to the department shall fully satisfy the requirements of
subdivision (a) and subdivision (a) of Section 5901 with respect
to the dealer selling at auction and the dealer conducting the
auction.

(3) The single form required by this subdivision does not relieve
a dealer of any obligation or responsibility that is required by any
other provision of law.

(c) A vehicle displaying a copy of the report of sale may be
operated without license plates or registration card until either of
the following, whichever occurs first:

(1) The license plates and registration card are received by the
purchaser.

(2) A 75-day period, commencing with the date of sale of the
vehicle, has expired.

(d) This section shall become operative on July 1, 2012.

SEC. 3.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.