AB 716

Under current law, with limited exceptions, a vehicle subject to registration by

the Department of Transportation may not be operated upon a highway in this state

unless the vehicle is registered or an application for vehicle registration has been

mailed or delivered to DOT or delivered to a motor vehicle dealer and, except for a

vehicle being operated within two business days of its sale or transfer, the vehicle

displays a temporary operation plate.

Also under current law, DOT must issue certain temporary operation plates,

and may issue other temporary operation plates and permits, for unregistered

vehicles. Temporary operation plates are generally valid for a period of 90 days or

until the person receives regular registration plates, whichever occurs first.

Currently, DOT must issue a sufficient number of temporary operation plates and

permits to each motor vehicle dealer licensed in this state for issuance to state

residents who purchase or lease certain types of motor vehicles, including

automobiles and light trucks.

This bill eliminates the requirement that DOT provide physical temporary

operation plates and permits to motor vehicle dealers and requires DOT to issue

these temporary operation plates and permits to motor vehicle dealers solely in an

electronic format.

Current law provides that, if DOT determines that a motor vehicle dealer has

misused temporary operation plates or permits or has violated requirements related

to the issuance of these plates or permits, DOT may require the dealer to return any

unused temporary operation plates or permits. The bill eliminates this consequence

and, instead, allows DOT to issue an order prohibiting an erring dealer from issuing

temporary operation plates or permits. The bill also provides that a dealer who has

misused temporary operation plates or permits or who has violated requirements

related to the issuance of these plates or permits may be required to forfeit not less

than $500 nor more than $5,000.