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SB-750 Vehicles: license plate pilot programs.(2017-2018)

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Date Published: 06/19/2017 09:00 PM
SB750:v96#DOCUMENT

Amended  IN  Assembly  June 19, 2017
Amended  IN  Senate  May 03, 2017
Amended  IN  Senate  April 17, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 750


Introduced by Senator Hueso

February 17, 2017


An act to amend Section 4853 of, to add Sections 293, 294, and 4854 to, and to add Chapter 2.7 (commencing with Section 11450) to Division 5 of, of the Vehicle Code, relating to vehicles.


LEGISLATIVE COUNSEL'S DIGEST


SB 750, as amended, Hueso. Vehicles: Digital license plates. Vehicles: license plate pilot programs.
Existing law requires a vehicle to display a license plate issued by the Department of Motor Vehicles on the rear of the vehicle. Existing law requires a vehicle to display tabs upon the license plate indicating the month and year of expiration of the vehicle registration and makes it a crime to display expired tabs. Existing law authorizes the department to conduct a pilot program, to be completed no later than January 1, 2019, to evaluate the use of alternatives to stickers, tabs, license plates, and registration cards, subject to certain requirements, and to report the results of the pilot program, as specified, to the Legislature no later than July 1, 2020. Existing law also authorizes the department to enter into contracts with qualified private industry partners to provide specified service relating to the registration of vehicles. Existing law regulates the licensing of persons engaged in the business of a registration service.
This bill would specify that the authorization to establish the above-mentioned pilot program includes the authority to establish a pilot program to evaluate digital license plates. This bill would, as part of the pilot program, authorize a person who enters into a contract with the department and is licensed as a registration service to provide a digital license plate, as defined, and would provide requirements for a digital license plate. The bill would authorize a digital license plate provider to enter into a payment arrangement with a customer that includes a prorated monthly payment of registration fees. The bill would require a digital license plate provider to wirelessly update the registration tab display on a digital license plate, and to cancel or revoke a registration tab at the request of the department. alternative methods of collecting fees related to the registration of a motor vehicle or the purchase of license plates.

By allowing for the automatic updating of registration tabs, this bill would extend the application of the crime of displaying expired tabs to more persons, thereby creating a state-mandated local program.

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   Local Program: YESNO  

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


SECTION 1.Section 293 is added to the Vehicle Code, to read:
293.

A “digital license plate” is an electronic display, meeting the requirements set forth in Section 4854, that is mounted on the rear of a vehicle in lieu of a license plate issued by the department.

SEC. 2.Section 294 is added to the Vehicle Code, to read:
294.

A “digital license plate provider” is a person engaged in the business of providing digital license plate hardware and services to vehicle owners, including the sale or lease of digital license plate hardware, processing of registration and collection of registration fees, and issuance of a digital license plate and registration tab images displayed on a digital license plate.

SEC. 3.SECTION 1.

 Section 4853 of the Vehicle Code is amended to read:

4853.
 (a) The department may issue one or more stickers, tabs, or other suitable devices in lieu of the license plates provided for under this code. Except when the physical differences between the stickers, tabs, or devices and license plates by their nature render the provisions of this code inapplicable, all provisions of this code relating to license plates may apply to stickers, tabs, or devices.
(b) The department may establish a pilot program to evaluate the use of alternatives to the stickers, tabs, license plates, and registration cards authorized by this code, including, but not limited to, digital license plates as defined in Section 293, subject to all of the following requirements:
(1) The alternative products shall be approved by the Department of the California Highway Patrol.
(2) The pilot program shall be limited to no more than 0.5 percent of registered vehicles for the purpose of road testing and evaluation.
(3) The alternative products to be evaluated shall be provided at no cost to the state.
(4) Any pilot program established by the department pursuant to this subdivision shall be completed no later than January 1, 2019.
(5) Any pilot program established by the department pursuant to this subdivision shall be limited to vehicle owners who have voluntarily chosen to participate in the pilot program.
(6) The pilot program may include an evaluation of alternative methods of collecting fees related to the registration of a motor vehicle, or the purchase of license plates, and the appropriate disbursement of those fees.
(c) In the conduct of any pilot program pursuant to this section, any data exchanged between the department and any electronic device or the provider of any electronic device shall be limited to those data necessary to display evidence of registration compliance. The department shall not receive or retain any information generated during the pilot program regarding the movement, location, or use of a vehicle participating in the pilot program.
(d) If the department conducts a pilot program authorized in subdivision (b), the department shall, no later than July 1, 2020, submit a report of the results of the pilot program to the Legislature, in compliance with Section 9795 of the Government Code, to include, but not be limited to, the following:
(1) An evaluation of the cost effectiveness of the alternatives used in the pilot program when compared to the department’s current use of stickers, tabs, license plates, and registration cards.
(2) A review of all products evaluated in the pilot program and of the features of those products. The report shall note if the devices evaluated in the pilot program are available with the ability to transmit and retain information relating to the movement, location, or use of a vehicle, and if a product contains that feature, the report shall also note if the product includes any security features to protect against unauthorized access to information.
(3) Recommendations for subsequent actions, if any, that should be taken with regard to alternatives evaluated in the pilot program.

SEC. 4.Section 4854 is added to the Vehicle Code, to read:
4854.

(a)A digital license plate, as part of the pilot program authorized pursuant to Section 4853, shall comply with all of the following criteria:

(1)Have a display screen that is rectangular in shape, 12 inches in length, and six inches in width.

(2)Display the registration number assigned to the vehicle in number and letter characters that have a minimum height of two and three-quarter inches, a minimum width of one and one-quarter inches, and a minimum spacing between characters of five-sixteenths of an inch.

(3)Display the word “California” or the abbreviation “Cal.”

(4)Display the month and year of the expiration of the registration.

(5)Be capable of being securely mounted on the rear of a vehicle in compliance with Section 5201.

(6)Be visible and legible in all lighting conditions and if photographed.

(7)Actively display at all times, including when the vehicle is parked.

(8)Have the capability to be wirelessly updated by the digital license plate provider or the department via a secure connection.

(b)A digital license plate and any plate design displayed on a digital license plate shall not be issued or displayed without the prior determination and approval of the department, in consultation with the Department of the California Highway Patrol, that the plate number, registration expiration, and state are sufficiently legible.

SEC. 5.Chapter 2.7 (commencing with Section 11450) is added to Division 5 of the Vehicle Code, to read:
2.7.Digital License Plate Providers
11450.

(a)A digital license plate provider, as part of the pilot program authorized pursuant to Section 4853, may enter into a contract with the department pursuant to Section 1685.

(b)A digital license plate provider shall be licensed by the department as a registration service pursuant to Chapter 2.5 (commencing with Section 11400).

(c)A digital license plate provider that has entered into a contract with the department and is properly licensed is authorized to provide the following services:

(1)Selling, leasing, installation, and repair of digital license plate hardware.

(2)Issuing a digital license plate image by causing such an image, including registration tabs, to be displayed upon a digital license plate. A provider may charge a reasonable monthly or annual fee, as determined by the department, for providing this service.

(3)Processing vehicle registrations and renewals and collecting registration fees. A provider may charge a fee, not to exceed the amount set by the department pursuant to Section 1685, for providing this service.

(4)Entering into a payment arrangement with a customer, allowing the customer to pay a monthly fee to the provider for hardware, service, and prorated monthly registration fees.

(5)Updating digital registration tabs displayed on a digital license plate or canceling current registration tabs at the request of the department. A digital license plate provider shall not cancel or revoke registration by turning off a digital license plate or causing it to not display the registration number. Registration shall be revoked by changing the registration tab display to an expired date or by displaying the word “EXPIRED” in the place of the tab, as approved by the department.

SEC. 6.

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.