Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 516


Introduced by Assembly Member Mullin

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(Coauthor: Assembly Member Chiu)

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(Coauthor: Senator Hill)

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February 23, 2015


An act tobegin insert amend Sections 1685, 4456, 4463, and 5200 of, to amend, repeal, and add Section 4456.5 of, and toend insert add Sectionsbegin delete 1686 andend deletebegin insert 1686,end insert 4456.6begin delete toend deletebegin insert, and 5202.5 to,end insert the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 516, as amended, Mullin. Vehicles: temporary license plates.

Existing law requires the Department of Motor Vehicles (DMV), upon registering a vehicle, to issue to the owner 2 license plates, as specified. Existing law also requires vehicle dealers and lessor-retailers to attach numbered report-of-sale forms issued by the DMV to a vehicle at the time of sale, and to submit to the DMV an application for registration of the vehicle, and the applicable fees, within a specified period after the date of sale.begin delete A violation of the Vehicle Code is a crime.end deletebegin insert Existing law generally makes a violation of the Vehicle Code an infraction, but makes counterfeiting a license plate a felonyend insertbegin insert.end insert

This bill would require the DMV to develop a temporary license plate system to enablebegin insert the DMV,end insert vehicle dealersbegin delete and lessor-retailersend deletebegin insert that are private industry partners, and first-line service providers, as defined,end insert to provide temporary license plates, and would require the system to begin operation onbegin delete or beforeend delete January 1, 2017. The bill wouldbegin delete alsoend delete require, commencing January 1, 2017, a motor vehicle dealerbegin delete or lessorretailerend deletebegin insert that is a private-industry partnerend insert to affix a temporary license plate, at the time of sale, to a vehicle sold without a permanent license plate.begin delete Because a violation of this provision would be a crime,end deletebegin insert The bill would authorize the operation of a vehicle that has been issued temporary license plates for 90 days after the sale of the vehicle or until the owner receives the permanent license plates, and would direct the owner to destroy the temporary license plates upon the receipt of the permanent license plates, as specified. A violation of these provisions would be a crime. The bill would also make counterfeiting a temporary license plate a felony. By creating new crimes and expanding the scope of an existing crime,end insert this bill would impose a state-mandated local program.

begin insert

Existing law authorizes a vehicle dealer to charge the purchaser of a vehicle a document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations. Under existing law, if a dealer has a contractual agreement with the DMV to be a private industry partner, the document processing charge may not exceed $80. Existing law also authorizes the dealer to impose an electronic filing charge that does not exceed the amount the dealer is charged by a first-line service provider for processing license plates, as specified.

end insert
begin insert

This bill would increase to $95 the document processing charge that may be imposed on a vehicle purchaser by a private industry partner. The bill would also require the first-line service provider to impose a $2 transaction fee for processing temporary license plates, and would expand the electronic filing charge to include that amount.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1685 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
2read:end insert

3

1685.  

(a) In order to continue improving the quality of products
4and services it provides to its customers, the department, in
5conformance with Article 4 (commencing with Section 19130) of
P3    1Chapter 5 of Part 2 of Division 5 of Title 2 of the Government
2Code, may establish contracts for electronic programs that allow
3qualified private industry partners to join the department in
4providing services that include processing and payment programs
5for vehicle registration and titling transactions.

6(b) (1) The department may enter into contractual agreements
7with qualified private industry partners. There are the following
8three types of private industry partnerships authorized under this
9section:

10(A) First-line business partner is an industry partner that receives
11data directly from the department and uses it to complete
12registration and titling activities for that partner’s own business
13purposes.

14(B) First-line service provider is an industry partner that receives
15information from the department and then transmits it to another
16authorized industry partner.

17(C) Second-line business partner is a partner that receives
18information from a first-line service provider.

19(2) The private industry partner contractual agreements shall
20include the following minimum requirements:

21(A) Filing of an application and payment of an application fee,
22as established by the department.

23(B) Submission of information, including, but not limited to,
24fingerprints and personal history statements, focusing on and
25concerning the applicant’s character, honesty, integrity, and
26reputation as the department may consider necessary.

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

28(3) The department shall, through regulations, establish any
29additional requirements for the purpose of safeguarding privacy
30and protecting the information authorized for release under this
31section.

32(c) The director may establish, through the adoption of
33regulations, the maximum amount that a qualified private industry
34partner may charge its customers in providing the services
35authorized under subdivision (a).

36(d) begin insert(1)end insertbegin insertend insert The department shall charge a three-dollar ($3)
37transaction fee for the information and services provided under
38subdivision (a). The private industry partner may pass the
39transaction fee to the customer, but the total charge to a customer
P4    1may not exceed the amount established by the director under
2subdivision (c).

begin insert

3(2) Commencing on January 1, 2017, the first-line service
4provider shall charge a two-dollar ($2) transaction fee for
5temporary license plates processed pursuant to subdivision (a) of
6Section 1686. The private industry partner may pass the transaction
7fee to the customer.

end insert

8(e) All fees collected by the department pursuant to subdivision
9(d) shall be deposited in the Motor Vehicle Account. On January
101 of each year, the department shall adjust the fee in accordance
11with the California Consumer Price Index. The amount of the fee
12shall be rounded to the nearest whole dollar, with amounts equal
13to, or greater than, fifty cents ($0.50) rounded to the next highest
14whole dollar.

15(f) The department shall adopt regulations and procedures that
16ensure adequate oversight and monitoring of qualified private
17industry partners to protect vehicle owners from the improper use
18of vehicle records. These regulations and procedures shall include
19provisions for qualified private industry partners to periodically
20submit records to the department, and the department shall review
21those records as necessary. The regulations shall also include
22provisions for the dedication of department resources to program
23monitoring and oversight; the protection of confidential records
24in the department’s files and databases; and the duration and nature
25of the contracts with qualified private industry partners.

26(g) The department shall, annually, by October 1, provide a
27report to the Legislature that shall include all of the following
28information gathered during the fiscal year immediately preceding
29the report date:

30(1) Listing of all qualified private industry partners, including
31names and business addresses.

32(2) Volume of transactions, by type, completed by business
33partners.

34(3) Total amount of funds, by transaction type, collected by
35business partners.

36(4) Total amount of funds received by the department.

37(5) Description of any fraudulent activities identified by the
38department.

39(6) Evaluation of the benefits of the program.

P5    1(7) Recommendations for any administrative or statutory
2changes that may be needed to improve the program.

3(h) Nothing in this section impairs or limits the authority
4provided in Section 4610 or Section 12155 of the Insurance Code.

5

begin deleteSECTION 1.end delete
6begin insertSEC. 2.end insert  

Section 1686 is added to the Vehicle Code, to read:

7

1686.  

begin insert(a)end insertbegin insertend insert The department shall develop, or contract with a
8private industry partner for the development of, a temporary license
9plate system that shall begin operating onbegin delete or beforeend delete January 1,
102017. The system shall enable the department, vehiclebegin delete dealers, and
11lessor-retailersend delete
begin insert dealers that are private industry partners under
12 Section 1685, and first-line service providersend insert
to provide temporary
13license plates at the time of sale of a vehicle. The system shall
14providebegin delete real-timeend delete electronic access to information identifying the
15vehicle and its owner only to those entities authorized to access
16the state’s vehicle registration system.

begin insert

17(b) For purposes of this section, “first-line service provider”
18has the same meaning as defined in Section 1685.

end insert
19begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 4456 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

20

4456.  

(a) When selling a vehicle, dealers and lessor-retailers
21shall use numbered report-of-sale forms issued by the department.
22The forms shall be used in accordance with the following terms
23and conditions:

24(1) The dealer or lessor-retailer shall attach for display a copy
25of the report of sale on the vehicle before the vehicle is delivered
26to the purchaser.

27(2) The dealer or lessor-retailer shall submit to the department
28an application accompanied by all fees and penalties due for
29registration or transfer of registration of the vehicle within 30 days
30from the date of sale, as provided in subdivision (c) of Section
319553, if the vehicle is a used vehicle, and 20 days if the vehicle is
32a new vehicle. Penalties due for noncompliance with this paragraph
33shall be paid by the dealer or lessor-retailer. The dealer or
34lessor-retailer shall not charge the purchaser for the penalties.

35(3) As part of an application to transfer registration of a used
36vehicle, the dealer or lessor-retailer shall include all of the
37following information on the certificate of title, application for a
38duplicate certificate of title, or form prescribed by the department:

39(A) Date of sale and report of sale number.

40(B) Purchaser’s name and address.

P6    1(C) Dealer’s name, address, number, and signature or signature
2of authorized agent.

3(D) Salesperson number.

4(4) If the department returns an application and the application
5was first received by the department within 30 days of the date of
6sale of the vehicle if the vehicle is a used vehicle, and 20 days if
7the vehicle is a new vehicle, the dealer or lessor-retailer shall
8submit a corrected application to the department within 50 days
9from the date of sale of the vehicle if the vehicle is a used vehicle,
10and 40 days if the vehicle is a new vehicle, or within 30 days from
11the date that the application is first returned by the department if
12the vehicle is a used vehicle, and 20 days if the vehicle is a new
13vehicle, whichever is later.

14(5) If the department returns an application and the application
15was first received by the department more than 30 days from the
16date of sale of the vehicle if the vehicle is a used vehicle, and 20
17days if the vehicle is a new vehicle, the dealer or lessor-retailer
18shall submit a corrected application to the department within 50
19days from the date of sale of the vehicle if the vehicle is a used
20vehicle, and 40 days if the vehicle is a new vehicle.

21(6) An application first received by the department more than
2250 days from the date of sale of the vehicle if the vehicle is a used
23vehicle, and 40 days if the vehicle is a new vehicle, is subject to
24the penalties specified in subdivisions (a) and (b) of Section 4456.1.

25(7) The dealer or lessor-retailer shall report the sale pursuant to
26Section 5901.

27(b) (1) A transfer that takes place through a dealer conducting
28a wholesale vehicle auction shall be reported to the department by
29that dealer on a single form approved by the department. The
30completed form shall contain, at a minimum, all of the following
31information:

32(A) The name and address of the seller.

33(B) The seller’s dealer number, if applicable.

34(C) The date of delivery to the dealer conducting the auction.

35(D) The actual mileage of the vehicle as indicated by the
36vehicle’s odometer at the time of delivery to the dealer conducting
37the auction.

38(E) The name, address, and occupational license number of the
39dealer conducting the auction.

P7    1(F) The name, address, and occupational license number of the
2buyer.

3(G) The signature of the dealer conducting the auction.

4(2) Submission of the completed form specified in paragraph
5(1) to the department shall fully satisfy the requirements of
6subdivision (a) and subdivision (a) of Section 5901 with respect
7to the dealer selling at auction and the dealer conducting the
8auction.

9(3) The single form required by this subdivision does not relieve
10a dealer of any obligation or responsibility that is required by any
11otherbegin delete provision ofend delete law.

begin insert

12(c) If temporary license plates have been issued for a vehicle,
13the vehicle may be operated until either of the following events,
14whichever occurs first:

end insert
begin insert

15(1) The permanent license plates and registration card are
16received by the purchaser.

end insert
begin insert

17(2) A 90-day period, commencing with the date of sale of the
18vehicle, has expired.

end insert
begin delete

19(c) A

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20begin insert(d)end insertbegin insertend insertbegin insertIf temporary license plates have not been issued for a
21vehicle, the end insert
vehicle displaying a copy of the report of sale may be
22operated without license plates or registration card until either of
23the followingbegin insert eventsend insert, whichever occurs first:

24(1) The license plates and registration card are received by the
25purchaser.

26(2) A 90-day period, commencing with the date of sale of the
27vehicle, has expired.

begin delete

28(d) This section shall become operative on July 1, 2012.

end delete
29begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 4456.5 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

30

4456.5.  

(a) A dealer may charge the purchaser or lessee of a
31vehicle the following charges:

32(1) A document processing charge for the preparation and
33processing of documents, disclosures, and titling, registration, and
34information security obligations imposed by state and federal law.
35The dealer document processing charge shall not be represented
36as a governmental fee.

37(A) If a dealer has a contractual agreement with the department
38to be a private industry partner pursuant to Section 1685, the
39document processing charge shall not exceed eighty dollars ($80).

P8    1(B) If a dealer does not have a contractual agreement with the
2department to be a private industry partner pursuant to Section
31685, the document processing charge shall not exceed sixty-five
4dollars ($65).

5(2) An electronic filing charge, not to exceed the actual amount
6the dealer is charged by a first-line service provider for providing
7license plate processing, postage, and the fees and services
8authorized pursuant to subdivisions (a) and (d) of Section 1685.
9The director may establish, through the adoption of regulations,
10the maximum amount that a first-line service provider may charge
11a dealer. The electronic filing charge shall not be represented as a
12governmental fee.

13(b) As used in this section, the term “first-line service provider”
14shall have the same meaning as defined in subdivision (b) of
15Section 1685.

begin delete

16(c) This section shall become operative on July 1, 2012.

end delete
begin insert

17(c) This section shall remain in effect only until January 1, 2017,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2017, deletes or extends that date.

end insert
20begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 4456.5 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
21

begin insert4456.5.end insert  

(a) A dealer may charge the purchaser or lessee of a
22vehicle the following charges:

23(1) A document processing charge for the preparation and
24processing of documents, disclosures, and titling, registration,
25and information security obligations imposed by state and federal
26law. The dealer document processing charge shall not be
27represented as a governmental fee.

28(A) If a dealer has a contractual agreement with the department
29to be a private industry partner pursuant to Section 1685, the
30document processing charge shall not exceed ninety-five dollars
31($95).

32(B) If a dealer does not have a contractual agreement with the
33department to be a private industry partner pursuant to Section
341685, the document processing charge shall not exceed sixty-five
35dollars ($65).

36(2) (A) An electronic filing charge, not to exceed the actual
37amount the dealer is charged by a first-line service provider for
38both of the following:

P9    1(i) Permanent license plate processing, postage, and the fees
2and services authorized pursuant to subdivisions (a) and (d) of
3Section 1685.

4(ii) Temporary license plate processing authorized pursuant to
5Section 1686.

6(B) The director may establish, through the adoption of
7regulations, the maximum amount that a first-line service provider
8may charge a dealer. The electronic filing charge shall not be
9represented as a governmental fee.

10(b) As used in this section, “first-line service provider” has the
11same meaning as defined in Section 1685.

12(c) This section shall become operative January 1, 2017.

end insert
13

begin deleteSEC. 2.end delete
14begin insertSEC. 6.end insert  

Section 4456.6 is added to the Vehicle Code, to read:

15

4456.6.  

(a) A motor vehicle dealerbegin delete or lessor-retailerend deletebegin insert that is a
16private industry partner pursuant to Section 1685end insert
shall, at the time
17of sale, affix a temporary license plate to a vehicle sold without a
18permanent license plate.

19(b) This section shall become operative on January 1, 2017.

20begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 4463 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

21

4463.  

(a) A person who, with intent to prejudice, damage, or
22defraud, commits any of the following acts is guilty of a felony
23and upon conviction thereof shall be punished by imprisonment
24pursuant to subdivision (h) of Section 1170 of the Penal Code for
2516 months or two or three years, or by imprisonment in a county
26jail for not more than one year:

27(1) begin insert(A)end insertbegin insertend insert Alters, forges, counterfeits, or falsifies a certificate of
28ownership, registration card, certificate, license, license plate,
29device issued pursuant to Section 4853, special plate, or permit
30provided for by this code or a comparable certificate of ownership,
31registration card, certificate, license, license plate, device
32comparable to that issued pursuant to Section 4853, special plate,
33or permit provided for by a foreign jurisdiction, or alters, forges,
34counterfeits, or falsifies the document, device, or plate with intent
35to represent it as issued by the department, or alters, forges,
36counterfeits, or falsifies with fraudulent intent an endorsement of
37transfer on a certificate of ownership or other document evidencing
38ownership, or with fraudulent intent displays or causes or permits
39to be displayed or have in his or her possession a blank, incomplete,
40canceled, suspended, revoked, altered, forged, counterfeit, or false
P10   1certificate of ownership, registration card, certificate, license,
2license plate, device issued pursuant to Section 4853, special plate,
3or permit.

begin insert

4(B) For purposes of this paragraph, “license plate” includes
5both temporary and permanent license plates.

end insert

6(2) Utters, publishes, passes, or attempts to pass, as true and
7genuine, a false, altered, forged, or counterfeited matter listed in
8paragraph (1) knowing it to be false, altered, forged, or
9counterfeited.

10(b) A person who, with intent to prejudice, damage, or defraud,
11commits any of the following acts is guilty of a misdemeanor, and
12upon conviction thereof shall be punished by imprisonment in a
13county jail for six months, a fine of not less than five hundred
14dollars ($500) and not more than one thousand dollars ($1,000),
15or both that fine and imprisonment, which penalty shall not be
16suspended:

17(1) Forges, counterfeits, or falsifies a disabled person placard
18or a comparable placard relating to parking privileges for disabled
19persons provided for by a foreign jurisdiction, or forges,
20counterfeits, or falsifies a disabled person placard with intent to
21represent it as issued by the department.

22(2) Passes, or attempts to pass, as true and genuine, a false,
23forged, or counterfeit disabled person placard knowing it to be
24false, forged, or counterfeited.

25(3) Acquires, possesses, sells, or offers for sale a genuine or
26counterfeit disabled person placard.

27(c) A person who, with fraudulent intent, displays or causes or
28 permits to be displayed a forged, counterfeit, or false disabled
29person placard, is subject to the issuance of a notice of parking
30violation imposing a civil penalty of not less than two hundred
31fifty dollars ($250) and not more than one thousand dollars
32($1,000), for which enforcement shall be governed by the
33procedures set forth in Article 3 (commencing with Section 40200)
34of Chapter 1 of Division 17 or is guilty of a misdemeanor
35punishable by imprisonment in a county jail for six months, a fine
36of not less than two hundred fifty dollars ($250) and not more than
37one thousand dollars ($1,000), or both that fine and imprisonment,
38which penalty shall not be suspended.

P11   1(d) For purposes of subdivision (b) or (c), “disabled person
2placard” means a placard issued pursuant to Section 22511.55 or
322511.59.

4(e) A person who, with intent to prejudice, damage, or defraud,
5commits any of the following acts is guilty of an infraction, and
6upon conviction thereof shall be punished by a fine of not less than
7one hundred dollars ($100) and not more than two hundred fifty
8dollars ($250) for a first offense, not less than two hundred fifty
9dollars ($250) and not more than five hundred dollars ($500) for
10a second offense, and not less than five hundred dollars ($500)
11and not more than one thousand dollars ($1,000) for a third or
12subsequent offense, which penalty shall not be suspended:

13(1) Forges, counterfeits, or falsifies a Clean Air Sticker or a
14comparable clean air sticker relating to high occupancy vehicle
15lane privileges provided for by a foreign jurisdiction, or forges,
16counterfeits, or falsifies a Clean Air Sticker with intent to represent
17it as issued by the department.

18(2) Passes, or attempts to pass, as true and genuine, a false,
19forged, or counterfeit Clean Air Sticker knowing it to be false,
20forged, or counterfeited.

21(3) Acquires, possesses, sells, or offers for sale a counterfeit
22Clean Air Sticker.

23(4) Acquires, possesses, sells, or offers for sale a genuine Clean
24Air Sticker separate from the vehicle for which the department
25issued that sticker.

26(f) As used in this section, “Clean Air Sticker” means a label
27or decal issued pursuant to Sections 5205.5 and 21655.9.

28begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 5200 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

29

5200.  

(a) When two license plates are issued by the department
30for use upon a vehicle, they shall be attached to the vehicle for
31which they were issued, one in the front and the other in the rear.

32(b) When only one license plate is issued for use upon a vehicle,
33it shall be attached to the rear thereof, unless the license plate is
34issued for use upon a truck tractor, in which case the license plate
35shall be displayed in accordance with Section 4850.5.

begin insert

36(c) For purposes of this section, “license plate” includes both
37temporary and permanent license plates.

end insert
38begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 5202.5 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
39

begin insert5202.5.end insert  

Upon receipt of permanent license plates, the owner
40of a vehicle shall replace any temporary license plates with the
P12   1permanent license plates and shall destroy the temporary license
2plates in accordance with instructions issued by the department.

end insert
3

begin deleteSEC. 3.end delete
4begin insertSEC. 10.end insert  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6the only costs that may be incurred by a local agency or school
7district will be incurred because this act creates a new crime or
8infraction, eliminates a crime or infraction, or changes the penalty
9for a crime or infraction, within the meaning of Section 17556 of
10the Government Code, or changes the definition of a crime within
11the meaning of Section 6 of Article XIII B of the California
12Constitution.



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