CALIFORNIA AB 516: WHAT YOU NEED TO KNOW.
CALIFORNIA AB 516: WHAT YOU NEED TO KNOW.
California AB 516 / Electronic Report of Sale & Temporary License Plates
California AB 516 was introduced to improve public safety on California’s roadways through the creation of a Temporary License Plate and electronic Report of Sale System. Once implemented, California will join the ranks of 35 other states in offering Temporary License Plates (TLP) for vehicles.
Beginning January 1, 2019 dealers will be required to electronically report the sale of a vehicle and issue a Temporary License Plate. Attached to the vehicle at the point of sale, the TLP will bridge the time between when a vehicle is sold and registration is in process, and permanent plates are issued. TLP’s are valid for a period of 90 days, and need to be removed upon receipt of permanent license plates. With TLP’s, law enforcement and toll operators will have immediate visibility to vehicle and owner information. Each year, thousands of vehicles operate on CA roadway’s and highway system with no license plates – which creates a public safety issue for law enforcement, and allows vehicles without plates to evade tolls.
No later than January 1, 2019, the California DMV will provide a system that will allow dealers to electronically report the sale of a vehicle and issue a TLP as needed. California AB 516 authorizes the use of First Line Service Providers to provide these services. This means that dealers utilizing a solution provided by a First Line Service Provider – like the Dealertrack California Reg & Title solution – will be able to directly access these services.
Delivering Answers to Frequently Asked Questions
Process Questions
When do these changes take effect?
How will these changes impact my dealership’s current process in the F&I office?
There are a few areas that will be impacted with AB 516, as follows:
- With electronic Report of Sale, all ROS numbers will be automatically assigned to a deal, and the Report of Sale form will be printed on demand. This means that you will no longer need to maintain a stack of physical Report of Sale forms to be used for deals. In addition, the 5-day notice portion of the Report of Sale form (which is currently sent to DMV) will be eliminated.
- Temporary license plates will need to be printed and affixed to the vehicle prior to the customer leaving the lot with their new vehicle. This applies to vehicles sold that do not already display license plates.
Will I still need to mail the 5-day notice portion of the Report of Sale to DMV?
No, as the Report of Sale information will be transmitted electronically this process will be eliminated with AB 516.
What vehicles will require temporary license plates?
Any new or used vehicles sold that do not already display license plates. This includes passenger vehicles, trucks, motorcycles, trailers, and motorhomes. Based on the vehicle type, either 1 or 2 temporary license plates will be required. For example, if the vehicle is a passenger vehicle, truck, or motorhome, 2 temporary license plates will be required. If the vehicle type is camp trailer, trailer coach, trailer, motorcycle, or electronic motorcycle, only 1 temporary license plate will be required.
How will F&I get Report of Sale numbers?
The Report of Sale numbers will be stored electronically and will be automatically assigned to a deal. The Report of Sale form will be printed on demand.
Will there still be a Report of Sale form that F&I prints out?
Yes, a Report of Sale form will be generated electronically and will print out on demand on regular paper. The completed form must still be signed and submitted with the title and registration work.
Will I still need to mail the 5-day notice portion of the Report of Sale to DMV?
No, as the Report of Sale information will be transmitted electronically, this process will be eliminated with AB 516.
What vehicles will require temporary license plates?
Any new or used vehicles sold that do not already display license plates. This includes passenger vehicles, trucks, motorcycles, trailers, and motorhomes. Based on the vehicle type, either 1 or 2 temporary license plates will be required. For example, if the vehicle is a passenger vehicle, truck, or motorhome, 2 temporary license plates will be required. If the vehicle type is camp trailer, trailer coach, trailer, motorcycle, or electronic motorcycle, only 1 temporary license plate will be required.
What happens to the temporary license plate in the case of an unwind?
In the case of an unwind, the system will mark the temporary license plate as voided and the physical temporary license plate should be destroyed.
How long are the temporary license plates valid?
The temporary license plate will be valid for 90 days from the date of sale of the vehicle or until the license plates and registration card are received by the purchaser, whichever occurs first. CA Vehicle Code 4456, Section 3, Part C.
That said, a vehicle may continue to be operated past the 90 days, as long as the owner can provide proof that an application has been submitted to DMV and it has not been more than 14 days since permanent license plates were issued to the owner. CA Vehicle Code 4456, Section 3, Part D.
Do I still need to place the Temporary Operating Copy portion of the Report of Sale form in the windshield of the sold vehicle?
Yes, the temporary operating copy portion of the Report of Sale form will still need to be placed in the windshield of the sold vehicle, in addition to the temporary license plate on the outside of the vehicle.
What if my printer jams when I’m printing the temporary license plate?
You will be able to reprint a temporary license plate up to 2 times, as needed, for scenarios such as a paper jam. If additional reprints are required beyond 2, manager approval will be needed.
What changes will be made to Dealertrack’s software to accommodate these changes?
We are currently working closely with the DMV to determine all final required changes. We have implemented temporary license plate solutions in a number of other states and will provide you with a similar streamlined solution that integrates smoothly into your current workflow and allows you to provide your customers with the best service possible.
Over the course of the coming weeks, we will provide you with additional information on the exact changes we’ll be making, and we’ll make sure you’re fully ready and trained on the changes prior the January 1st , 2019, effective date.
I use a Registration Service to process my registration and titling work. How will this work?
California AB 516 will require dealers to electronically report the sale of a vehicle to an electronic database, print out an electronically produced Report of Sale (ROS) form, and provide a Temporary License Plate (TLP) at the time of sale. This applies to all vehicles that do not already display license plates. Registration and titling work can still be submitted to a Reg Service for processing afterwards, but the above-mentioned activities will be required to take place at the time of the sale.
Financial Questions
What are the costs associated with the electronic Report of Sale and Temporary License Plates?
The incremental costs associated with AB 516 include the cost of the actual temporary license plate paper, and a laser printer(s) and toner to print the temporary license plates.
Will I be able to recoup any of this additional cost?
Yes, with AB 516, the document processing charge will be increased by $5 to help offset the additional costs that will be incurred by the dealers. For BPA participants, the document processing charge will be raised to $85 (currently $80). For non-BPA participants, the document processing charge will be raised to $70 (currently $65). CA Vehicle Code 4456, Section 6.
Logistical Questions
What kind of paper will be used for the temporary license plates?
The temporary license plates will be required to print on a special paper that will be durable in variable weather conditions. More information will be provided shortly on the exact details of this paper.
How will I obtain this special temporary license plate paper?
You will be able to order the required paper through the vendor providing you with electronic Report of Sale and temporary license plate services.
What will the temporary license plate actually look like?
The temporary license plate will be rectangular in shape. For autos, the size will be 11 inches in length and 6 inches in width. For motorcycles, the size will be 7 inches in length and 4 inches in width.
The data printed on the temporary license plate will include the following: temporary license plate number, Report of Sale number, expiration date, VIN, vehicle year, vehicle make. Example mock-up (note, this is not the final design):
Will I need to affix two temporary license plates to the vehicle?
Yes, if the vehicle type is a passenger vehicle, truck, or motorhome, two temporary license plates will need to be printed and affixed to the vehicle. If the vehicle type is a trailer, camp trailer, trailer coach, motorcycle, or electric motorcycle, only one temporary license plate will need to be printed and affixed to the vehicle.
General Questions
What is AB 516?
California Assembly Bill 516 (AB 516) was signed by the Governor in 2016 and states that the DMV shall implement a system which requires a dealer or lessor-retailer, wholesale dealer, and auto auction to electronically report the sale of a vehicle to an electronic database, print out an electronically produced Report of Sale (ROS) form, and provide a Temporary License Plate (TLP) at the time of sale, for vehicles sold that do not already display license plates. The full text of the bill can be found here.
When does AB 516 go into effect?
January 1, 2019.
California Reg & Title - AB516 Training OnDemand