(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, 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, 2021.

(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.

(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) In the conduct of any pilot program pursuant to this section, the department may evaluate the inclusion of participants in the Business Partner Automation Program, pursuant to Section 1685.

(e) If the department conducts a pilot program authorized in subdivision (b), the department shall, no later than July 1, 2020, submit a report regarding the pilot program to the Legislature, in compliance with Section 9795 of the Government Code, to include, but not be limited to, all of 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.

(Amended by Stats. 2019, Ch. 319, Sec. 1. (AB 1614) Effective January 1, 2020.)