The Silicon Valley Mercury News reports that with the state a budget deficit of $19 billion (£12.8 billion), the proposal could be seen as a vital money maker and, in emergencies, the displays could be used to broadcast traffic or public safety information.
It is thought the idea would involve mimicking a standard license plate when a vehicle is moving, but when it comes to a stop for more than four seconds, adverts would appear on screen for the attention of other motorists.
State senator Curren Price of Los Angeles told the publication that California would be the first state in the US to use the technology should the Department of Motor Vehicles recommend its usage.
Last month, a new display LED screen was installed on the exterior of the Philharmonic Concert Hall in the Georgian capital Tbilisi, which will carry both commercial advertising and promotions for forthcoming events, Screens.tv reported.
