Amended in Senate April 1, 2013

Senate Bill No. 806

Introduced by Senator Price

February 22, 2013

An act to amend begin delete Sections 1685 and 4850 end delete begin insert Section 4853 end insert of the Vehicle Code, relating to the Department of Motor Vehicles.

LEGISLATIVE COUNSEL’S DIGEST

SB 806, as amended, Price. Department of Motor Vehicles.

Existing law authorizes the Department of Motor Vehicles to establish contracts for electronic programs that allow qualified private industry partners to join the department in providing services that include processing and payment programs for vehicle registration and titling transactions. Existing law, the Schrade-Belotti Act, requires the department, upon registering a vehicle, to issue to the owner partially or fully reflectorized license plates or devices for the vehicle, as specified.

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This bill would make technical, nonsubstantive changes to these provisions.

end delete begin insert

This bill would authorize the department to authorize the use of stickers or suitable devices issued by motor clubs, as defined, or first-line business partners or first-line service providers, as specified, in lieu of license plates, as specified.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 4853 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

4853.  

begin insert (a) end insert begin insert   end insert 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 where 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.

begin insert

(b) In lieu of license plates provided for under this chapter, the
department may authorize the use of stickers or suitable devices
issued by motor clubs as defined in Section 12142 of the Insurance
Code, or first-line business partners or first-line service providers
operating pursuant to subdivision (b) of Section 1685.

end insert begin insert

(c) The department may adopt appropriate rules and regulations
for the use and display of stickers or devices issued in lieu of
license plates.

end insert

begin delete

SECTION 1.  

Section 1685 of the Vehicle Code is amended to
read:

1685.  

(a) In order to continue improving the quality of products
and services the department provides to its customers, the
department, in conformance with Article 4 (commencing with
Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of
the Government Code, may establish contracts for electronic
programs that allow qualified private industry partners to join the
department in providing services that include processing and
payment programs for vehicle registration and titling transactions.

(b) (1) The department may enter into contractual agreements
with qualified private industry partners. There are the following
three types of private industry partnerships authorized under this
section:

(A) First-line business partner is an industry partner that receives
data directly from the department and uses it to complete
registration and titling activities for that partner’s own business
purposes.

(B) First-line service provider is an industry partner that receives
information from the department and then transmits it to another
authorized industry partner.

(C) Second-line business partner is a partner that receives
information from a first-line service provider.

(2) The private industry partner contractual agreements shall
include the following minimum requirements:

(A) Filing of an application and payment of an application fee,
as established by the department.

(B) Submission of information, including, but not limited to,
fingerprints and personal history statements, focusing on and
concerning the applicant’s character, honesty, integrity, and
reputation as the department may consider necessary.

(C) Posting a bond in an amount consistent with Section 1815.

(3) The department shall, through regulations, establish any
additional requirements for the purpose of safeguarding privacy
and protecting the information authorized for release under this
section.

(c) The director may establish, through the adoption of
regulations, the maximum amount that a qualified private industry
partner may charge its customers in providing the services
authorized under subdivision (a).

(d) The department shall charge a three-dollar ($3) transaction
fee for the information and services provided under subdivision
(a). The private industry partner may pass the transaction fee to
the customer, but the total charge to a customer may not exceed
the amount established by the director under subdivision (c).

(e) All fees collected by the department pursuant to subdivision
(d) shall be deposited in the Motor Vehicle Account. On January
1 of each year, the department shall adjust the fee in accordance
with the California Consumer Price Index. The amount of the fee
shall be rounded to the nearest whole dollar, with amounts equal
to, or greater than, fifty cents ($0.50) rounded to the next highest
whole dollar.

(f) The department shall adopt regulations and procedures that
ensure adequate oversight and monitoring of qualified private
industry partners to protect vehicle owners from the improper use
of vehicle records. These regulations and procedures shall include
provisions for qualified private industry partners to periodically
submit records to the department, and the department shall review
those records as necessary. The regulations shall also include
provisions for the dedication of department resources to program
monitoring and oversight; the protection of confidential records
in the department’s files and databases; and the duration and nature
of the contracts with qualified private industry partners.

(g) The department shall, annually, by October 1, provide a
report to the Legislature that shall include all of the following
information gathered during the fiscal year immediately preceding
the report date:

(1) Listing of all qualified private industry partners, including
names and business addresses.

(2) Volume of transactions, by type, completed by business
partners.

(3) Total amount of funds, by transaction type, collected by
business partners.

(4) Total amount of funds received by the department.

(5) Description of any fraudulent activities identified by the
department.

(6) Evaluation of the benefits of the program.

(7) Recommendations for any administrative or statutory
changes that may be needed to improve the program.

(h) Nothing in this section impairs or limits the authority
provided in Section 4610 or Section 12155 of the Insurance Code.

SEC. 2.  

Section 4850 of the Vehicle Code is amended to read:

4850.  

(a) The department, upon registering a vehicle, shall
issue to the owner two partially or fully reflectorized license plates
or devices for a motor vehicle, other than a motorcycle, and one
partially or fully reflectorized license plate or device for all other
vehicles required to be registered under this code. The plates or
devices shall identify the vehicles for which they are issued for
the period of their validity.

(b) Notwithstanding any other provision of law, no contract
shall be let to any nongovernmental entity for the purchase or
securing of reflectorized material for the plates, unless the
department has made every reasonable effort to secure qualified
bids from as many independent, responsible bidders as possible.
No contract shall be let to any nongovernmental entity for the
manufacturing of reflectorized safety license plates.

(c) In addition to any other fees specified in this code, a fee of
one dollar ($1) for reflectorization shall be paid only by those
vehicle owners receiving license plates or devices under this
section.

(d) This section does not require vehicle owners with
nonreflectorized license plates or devices to replace them with
reflectorized plates or devices.

(e) This section shall be known, and may be cited, as the
Schrade-Belotti Act.

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