Summary
SB-1042 will task the Little Hoover Commission to analyze specific reforms to California’s motor vehicle including the elimination of physical stickers, the implementation of multi-year registration, and installment payments for registration.
Background
California’s current motor vehicle registration system has remained largely unchanged for decades. Under existing law, the Department of Motor Vehicles (DMV) requires vehicle owners to pay registration fees every 12 months, after which they receive a physical paper registration card and a pressure-sensitive adhesive "year sticker" to be displayed on the rear license plate. This system incurs significant administrative costs related to the printing and mailing of millions of stickers annually. Furthermore, California has already limited the ability for law enforcement to use physical stickers as a means for probable cause or issuing a ticket. The proliferation of Automated License Plate Readers (ALPRs) and mobile access to DMV databases allows law enforcement to verify a vehicle’s registration status without visually inspecting a year sticker.
While California has traditionally adhered to an annual physical year sticker for registration, several states have already transitioned to more modern systems. Pennsylvania, New Jersey, and Connecticut have eliminated registration stickers entirely, reporting millions of dollars in savings from reduced printing and postage costs, while also reporting no decrease in registration. Additionally, nearly ten states including Idaho and Florida have implemented two-year registration cycles to reduce the frequency of administrative transactions for both the government and the public.
SB-1042 will study ways to modernize California’s vehicle registration system using current technology while addressing the financial realities faced by residents. This study will provide the background to move California’s DMV processes into the 21st century without compromising law enforcement efficacy or state revenue.
Proposal
SB-1042 directs the Little Hoover Commission to study proven methods from other states to modernize California’s motor vehicle registration system and identify opportunities to increase efficiency and reduce costs for taxpayers.