BILL ANALYSIS �
AB 1864
Page 1
ASSEMBLY THIRD READING
AB 1864 (Daly)
As Introduced February 19, 2014
Majority vote
TRANSPORTATION 16-0 APPROPRIATIONS 16-1
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|Ayes:|Lowenthal, Linder, |Ayes:|Gatto, Bigelow, |
| |Achadjian, Ammiano, | |Bocanegra, Bradford, Ian |
| |Bloom, Bonta, Buchanan, | |Calderon, Campos, Eggman, |
| |Daly, Frazier, Gatto, | |Gomez, Holden, Jones, |
| |Holden, Logue, Nazarian, | |Linder, Pan, Quirk, |
| |Patterson, Quirk-Silva, | |Ridley-Thomas, Wagner, |
| |Waldron | |Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Donnelly |
| | | | |
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SUMMARY : Reduces from 90 to 75 days the maximum period a
purchased vehicle may be operated without license plates or a
registration card.
EXISTING LAW :
1)Allows a vehicle displaying a copy of the report of sale to be
operated without license plates or a 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.
2)Requires a dealer or lessor-retailer to submit to the
Department of Motor Vehicles (DMV) an application and relevant
fees for registration or transfer of registration of a vehicle
within 30 days for a used vehicle or 20 days for a new
vehicle.
3)Provides a dealer or lessor-retailer a specified response time
if DMV returns a registration application, contingent on the
type of vehicle.
4)Requires a new motor vehicle dealer to participate in DMV's
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electronic vehicle registration program (EVR).
5)Requires license plates to be attached upon receipt by a
vehicle owner.
6)Establishes a penalty of an infraction for a person found
guilty of operating a motor vehicle without license plates
affixed to the vehicle, as specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs to DMV would be minor and absorbable to respond
to additional complaints from vehicle purchasers who do not
receive their plates within 75 days instead of 90.
COMMENTS : AB 1215 (Blumenfield), Chapter 329, Statutes of 2011,
implemented several changes to the EVR program and overall
vehicle registration process. Primarily, AB 1215 required all
new vehicle dealerships to register the cars they sell through
the EVR program, increased document processing charges, required
an owner of a vehicle to attach license plates on a vehicle upon
receipt, and allowed a purchased vehicle to be operated while
displaying the report of sale notice for no longer than 90 days
or until the plates are received by the purchaser, whichever
occurs first.
While existing law now requires a person to install a vehicle's
license plates upon receipt, a person may in fact operate a
vehicle for up to 90 days without affixed license plates due to
law enforcement's inability to readily determine from a distance
the date by which a vehicle should have its license plates
installed.
The author asserts that "when AB 1215 was originally passed by
the legislature, 90 days was the stated goal for getting
consumers their license plates. Current practice, as a result
of the implementation of AB 1215, is for almost all license
plates to arrive within 30 days. The required 75 days as
proposed by AB 1864 still gives consumers plenty of time to
receive their license plates and for both the dealers and DMV to
make sure that the vehicle registration process is complete and
accurate."
Overall, the implementation of AB 1215 has been viewed by many
in the industry as effectively improving and expediting the
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period from when a person purchases a vehicle to when they
receive their license plates. Both DMV and DMV-approved
first-line providers have indicated that AB 1215 implementation
has expedited the process to where license plates are being
issued, on average, between 14 to 30 days. The California New
Car Dealers Association further affirms that following AB 1215
successful implementation, consumers are now routinely receiving
license plates as soon as two weeks after the purchase or lease
of their vehicle, with almost all license plates being received
by vehicle owners within a month.
It is important to note that DMV has indicated the department
does not collect statistics on the number of cases where a
vehicle's license plates are issued past the 90-day mark.
However, DMV notes that when the issuance of license plates does
surpass 90 days, it's typically related to titling issues with
the purchaser and not dealer error.
Thus, by reducing the period from 90 to 75 days a vehicle may be
operated with a report of sale notice, this bill aims to benefit
law enforcement and toll agencies by allowing these entities to
identify motorist who may be willfully breaking the law in a
more timely manner.
Related legislation: AB 2197 (Mullin) of the current
legislative session, requires DMV, in collaboration with
qualified industry providers, to develop and implement a
temporary license plate system and requires all vehicles sold by
a dealer or lessor-retailer that do not possess a permanent
license plate to be affixed with a temporary license plate as
specified. AB 2197 bill is pending in the Assembly
Transportation Committee.
Previous legislation: AB 1215 (Blumenfield), Chapter 329,
Statutes of 2011, required dealers of new motor vehicle to
participate in DMV's EVR program and required license plates to
be attached upon receipt by the vehicle owner.
Analysis Prepared by : Manny Leon / TRANS. /319-2093
FN: 0003271
AB 1864
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