BILL ANALYSIS �
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THIRD READING
Bill No: AB 1864
Author: Daly (D)
Amended: 8/6/14 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 6/24/14
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-1, 5/5/14 - See last page for vote
SUBJECT : Vehicles: license plates
SOURCE : California New Car Dealers Association
DIGEST : This bill requires the Department of Motor Vehicles
(DMV) to evaluate the need for California to implement a new
system for the temporary identification of vehicles during the
time before license plates arrive.
ANALYSIS : Existing law prohibits a person from driving,
moving, or parking a motor vehicle on the highway or in a public
parking facility unless it is registered with the DMV. When
someone buys a new car, it is not yet registered, nor does it
display license plates. Instead, the dealer must affix to the
inside of the vehicle's windshield a DMV-created report-of-sale
form showing that the vehicle is in the process of being
registered. The report-of-sale provides temporary operating
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authority for that vehicle. This process is also followed for
used cars that do not have license plates.
At the time of retail sale, existing law assigns the vehicle
dealer responsibility for submitting an application and
accompanying fees to DMV to register a new vehicle and to
transfer registration for a used vehicle. The dealer has 20
days for a new vehicle or 30 days for a used vehicle to deliver
to DMV the application and fees necessary to register the
vehicle in the buyer's name. (This process typically occurs
through a third party, known as a DMV Business Partner.)
Once DMV receives and processes the application, it issues and
then DMV (or its business partner) mails to the new owner two
license plates, a vehicle registration card, and the appropriate
registration stickers for the vehicle's rear license plate. The
owner must affix the two license plates upon receipt of them,
but the vehicle may be operated while displaying a
report-of-sale until the owner receives the license plates or 90
days, whichever occurs first.
This bill directs DMV to assess the need for a temporary vehicle
identifier, beyond the report-of-sale, that vehicles could
display during this period and, if that assessment shows the
need, to examine various alternative systems. Specifically, DMV
shall:
1.Assess, in consultation with California Highway Patrol (CHP),
the need for a temporary vehicle identification system
different from the display of the report-of-sale form. In
making this assessment, DMV shall consider information from
relevant entities, including local government, other law
enforcement, licensed vehicle dealers, first-line business
partners, and consumer representatives as well as the
experience in other states with temporary license plates or
other alternative vehicle identification systems.
2.Examine, if the assessment shows a need, the costs and
benefits of different temporary vehicle identification systems
that the state could put in place, including potential methods
for paying the costs associated with these systems. This bill
specifically directs DMV to consider:
An enhanced display of the report-of-sale beyond what is
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required in existing law.
A temporary license plate system that is not integrated
with either DMV's or law enforcement's databases.
A temporary license plate system with its own database
that is accessible both to DMV and to law enforcement.
A temporary license plate system that is fully
integrated with DMV's database and the California Law
Enforcement Telecommunications System.
1.Submit a report by January 1, 2016 to the Assembly
Transportation Committee and the Senate Transportation and
Housing Committee that provides the result of the assessment
and the examination, if conducted. In this report, DMV, along
with CHP, shall make a recommendation as to whether the state
should implement a new temporary vehicle identification
system.
Comments
State law requires that a vehicle owner attach a license plate
to a vehicle "upon receipt" of that license plate, but allows up
to 90 days for the license plate to arrive. Typically, license
plates arrive within a month, as state law also provides dealers
20 days after selling a vehicle to submit the required
application and fees to DMV. This 20-day period is to ensure
that the dealer has time to finish the financing of the vehicle
through a third-party lender and to confirm other details of the
new ownership arrangement. It is this period from time of sale
to receipt of plates that a temporary vehicle identifier -
currently the report-of-sale - fills. In recent years, several
proposals have surfaced to mandate various temporary license
plate systems to replace the report-of-sale. This bill charges
DMV with assessing the need for such a system, to examine
options for how it could be implemented, and to recommend a
system that would most cost-effectively meet the need.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/12/14)
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California New Car Dealers Association (source)
OPPOSITION : (Verified 8/12/14)
Metropolitan Transportation Commission
ASSEMBLY FLOOR : 74-1, 5/5/14
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,
Jones, Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein,
Medina, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,
Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
P�rez
NOES: Donnelly
NO VOTE RECORDED: Logue, Mansoor, Melendez, Mullin, Vacancy
JA:k 8/12/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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