BILL NUMBER: AB 516 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2015
INTRODUCED BY Assembly Member Mullin
( Coauthor: Assembly Member
Chiu )
( Coauthor: Senator Hill
)
FEBRUARY 23, 2015
An act to amend Sections 1685, 4456, 4463, and 5200 of, to
amend, repeal, and add Section 4456.5 of, and to add Sections
1686 and 1686, 4456.6 to
, and 5202.5 to, 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. A
violation of the Vehicle Code is a crime. Existing law
generally makes a violation of the Vehicle Code an infraction, bu
t makes counterfeiting a license plate a felony
.
This bill would require the DMV to develop a temporary license
plate system to enable the DMV, vehicle dealers
and lessor-retailers that are private industry
partners, and first-line service providers, as defined, to
provide temporary license plates, and would require the system to
begin operation on or before January 1, 2017. The
bill would also require, commencing January 1,
2017, a motor vehicle dealer or lessorretailer
that is a private-industry partner to affix a temporary
license plate, at the time of sale, to a vehicle sold without a
permanent license plate. Because a violation of this
provision would be a crime, 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 a lso make
counterfeiting a temporary license plate a felony. By creating new
crimes and expanding the scope of an existing crime, this bill
would impose a state-mandated local program.
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.
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.
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:
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 it 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) (1) 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).
(2) Commencing on January 1, 2017, the first-line service provider
shall charge a two-dollar ($2) transaction fee for temporary license
plates processed pursuant to subdivision (a) of Section 1686. The
private industry partner may pass the transaction fee to the
customer.
(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.
SECTION 1. SEC. 2. Section 1686 is
added to the Vehicle Code, to read:
1686. (a) The department shall develop, or
contract with a private industry partner for the development of, a
temporary license plate system that shall begin operating on
or before January 1, 2017. The system shall enable the
department, vehicle dealers, and lessor-retailers
dealers that are private industry partners under
Section 1685, and first-line service providers to provide
temporary license plates at the time of sale of a vehicle. The system
shall provide real-time electronic access to
information identifying the vehicle and its owner only to those
entities authorized to access the state's vehicle registration
system.
(b) For purposes of this section, "first-line service provider"
has the same meaning as defined in Section 1685.
SEC. 3. Section 4456 of the Vehicle
Code is amended to read:
4456. (a) When selling a vehicle, dealers and lessor-retailers
shall use numbered report-of-sale forms issued by the department. The
forms shall be used in accordance with the following terms and
conditions:
(1) The dealer or lessor-retailer shall attach for display a copy
of the report of sale on the vehicle before the vehicle is delivered
to the purchaser.
(2) The dealer or lessor-retailer shall submit to the department
an application accompanied by all fees and penalties due for
registration or transfer of registration of the vehicle within 30
days from the date of sale, as provided in subdivision (c) of Section
9553, if the vehicle is a used vehicle, and 20 days if the vehicle
is a new vehicle. Penalties due for noncompliance with this paragraph
shall be paid by the dealer or lessor-retailer. The dealer or
lessor-retailer shall not charge the purchaser for the penalties.
(3) As part of an application to transfer registration of a used
vehicle, the dealer or lessor-retailer shall include all of the
following information on the certificate of title, application for a
duplicate certificate of title, or form prescribed by the department:
(A) Date of sale and report of sale number.
(B) Purchaser's name and address.
(C) Dealer's name, address, number, and signature or signature of
authorized agent.
(D) Salesperson number.
(4) If the department returns an application and the application
was first received by the department within 30 days of the date of
sale of the vehicle if the vehicle is a used vehicle, and 20 days if
the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days from
the date of sale of the vehicle if the vehicle is a used vehicle, and
40 days if the vehicle is a new vehicle, or within 30 days from the
date that the application is first returned by the department if the
vehicle is a used vehicle, and 20 days if the vehicle is a new
vehicle, whichever is later.
(5) If the department returns an application and the application
was first received by the department more than 30 days from the date
of sale of the vehicle if the vehicle is a used vehicle, and 20 days
if the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days from
the date of sale of the vehicle if the vehicle is a used vehicle, and
40 days if the vehicle is a new vehicle.
(6) An application first received by the department more than 50
days from the date of sale of the vehicle if the vehicle is a used
vehicle, and 40 days if the vehicle is a new vehicle, is subject to
the penalties specified in subdivisions (a) and (b) of Section
4456.1.
(7) The dealer or lessor-retailer shall report the sale pursuant
to Section 5901.
(b) (1) A transfer that takes place through a dealer conducting a
wholesale vehicle auction shall be reported to the department by that
dealer on a single form approved by the department. The completed
form shall contain, at a minimum, all of the following information:
(A) The name and address of the seller.
(B) The seller's dealer number, if applicable.
(C) The date of delivery to the dealer conducting the auction.
(D) The actual mileage of the vehicle as indicated by the vehicle'
s odometer at the time of delivery to the dealer conducting the
auction.
(E) The name, address, and occupational license number of the
dealer conducting the auction.
(F) The name, address, and occupational license number of the
buyer.
(G) The signature of the dealer conducting the auction.
(2) Submission of the completed form specified in paragraph (1) to
the department shall fully satisfy the requirements of subdivision
(a) and subdivision (a) of Section 5901 with respect to the dealer
selling at auction and the dealer conducting the auction.
(3) The single form required by this subdivision does not relieve
a dealer of any obligation or responsibility that is required by any
other provision of law.
(c) If temporary license plates have been issued for a vehicle,
the vehicle may be operated until either of the following events,
whichever occurs first:
(1) The permanent license plates and registration card are
received by the purchaser.
(2) A 90-day period, commencing with the date of sale of the
vehicle, has expired.
(c) A
(d) If temporary license plates have
not been issued for a vehicle, the vehicle
displaying a copy of the report of sale may be operated without
license plates or registration card until either of the following
events , whichever occurs first:
(1) The license plates and registration card are received by the
purchaser.
(2) A 90-day period, commencing with the date of sale of the
vehicle, has expired.
(d) This section shall become operative on July 1, 2012.
SEC. 4. Section 4456.5 of the Vehicle
Code is amended to read:
4456.5. (a) A dealer may charge the purchaser or lessee of a
vehicle the following charges:
(1) A document processing charge for the preparation and
processing of documents, disclosures, and titling, registration, and
information security obligations imposed by state and federal law.
The dealer document processing charge shall not be represented as a
governmental fee.
(A) If a dealer has a contractual agreement with the department to
be a private industry partner pursuant to Section 1685, the document
processing charge shall not exceed eighty dollars ($80).
(B) If a dealer does not have a contractual agreement with the
department to be a private industry partner pursuant to Section 1685,
the document processing charge shall not exceed sixty-five dollars
($65).
(2) An electronic filing charge, not to exceed the actual amount
the dealer is charged by a first-line service provider for providing
license plate processing, postage, and the fees and services
authorized pursuant to subdivisions (a) and (d) of Section 1685. The
director may establish, through the adoption of regulations, the
maximum amount that a first-line service provider may charge a
dealer. The electronic filing charge shall not be represented as a
governmental fee.
(b) As used in this section, the term "first-line service provider"
shall have the same meaning as defined in subdivision (b) of Section
1685.
(c) This section shall become operative on July 1, 2012.
(c) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 5. Section 4456.5 is added to the
Vehicle Code , to read:
4456.5. (a) A dealer may charge the purchaser or lessee of a
vehicle the following charges:
(1) A document processing charge for the preparation and
processing of documents, disclosures, and titling, registration, and
information security obligations imposed by state and federal law.
The dealer document processing charge shall not be represented as a
governmental fee.
(A) If a dealer has a contractual agreement with the department to
be a private industry partner pursuant to Section 1685, the document
processing charge shall not exceed ninety-five dollars ($95).
(B) If a dealer does not have a contractual agreement with the
department to be a private industry partner pursuant to Section 1685,
the document processing charge shall not exceed sixty-five dollars
($65).
(2) (A) An electronic filing charge, not to exceed the actual
amount the dealer is charged by a first-line service provider for
both of the following:
(i) Permanent license plate processing, postage, and the fees and
services authorized pursuant to subdivisions (a) and (d) of Section
1685.
(ii) Temporary license plate processing authorized pursuant to
Section 1686.
(B) The director may establish, through the adoption of
regulations, the maximum amount that a first-line service provider
may charge a dealer. The electronic filing charge shall not be
represented as a governmental fee.
(b) As used in this section, "first-line service provider" has the
same meaning as defined in Section 1685.
(c) This section shall become operative January 1, 2017.
SEC. 2. SEC. 6. Section 4456.6 is
added to the Vehicle Code, to read:
4456.6. (a) A motor vehicle dealer or lessor-retailer
that is a private industry partner pursuant to Section
1685 shall, at the time of sale, affix a temporary license
plate to a vehicle sold without a permanent license plate.
(b) This section shall become operative on January 1, 2017.
SEC. 7. Section 4463 of the Vehicle
Code is amended to read:
4463. (a) A person who, with intent to prejudice, damage, or
defraud, commits any of the following acts is guilty of a felony and
upon conviction thereof shall be punished by imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code for 16 months or
two or three years, or by imprisonment in a county jail for not more
than one year:
(1) (A) Alters, forges, counterfeits, or
falsifies a certificate of ownership, registration card, certificate,
license, license plate, device issued pursuant to Section 4853,
special plate, or permit provided for by this code or a comparable
certificate of ownership, registration card, certificate, license,
license plate, device comparable to that issued pursuant to Section
4853, special plate, or permit provided for by a foreign
jurisdiction, or alters, forges, counterfeits, or falsifies the
document, device, or plate with intent to represent it as issued by
the department, or alters, forges, counterfeits, or falsifies with
fraudulent intent an endorsement of transfer on a certificate of
ownership or other document evidencing ownership, or with fraudulent
intent displays or causes or permits to be displayed or have in his
or her possession a blank, incomplete, canceled, suspended, revoked,
altered, forged, counterfeit, or false certificate of ownership,
registration card, certificate, license, license plate, device issued
pursuant to Section 4853, special plate, or permit.
(B) For purposes of this paragraph, "license plate" includes both
temporary and permanent license plates.
(2) Utters, publishes, passes, or attempts to pass, as true and
genuine, a false, altered, forged, or counterfeited matter listed in
paragraph (1) knowing it to be false, altered, forged, or
counterfeited.
(b) A person who, with intent to prejudice, damage, or defraud,
commits any of the following acts is guilty of a misdemeanor, and
upon conviction thereof shall be punished by imprisonment in a county
jail for six months, a fine of not less than five hundred dollars
($500) and not more than one thousand dollars ($1,000), or both that
fine and imprisonment, which penalty shall not be suspended:
(1) Forges, counterfeits, or falsifies a disabled person placard
or a comparable placard relating to parking privileges for disabled
persons provided for by a foreign jurisdiction, or forges,
counterfeits, or falsifies a disabled person placard with intent to
represent it as issued by the department.
(2) Passes, or attempts to pass, as true and genuine, a false,
forged, or counterfeit disabled person placard knowing it to be
false, forged, or counterfeited.
(3) Acquires, possesses, sells, or offers for sale a genuine or
counterfeit disabled person placard.
(c) A person who, with fraudulent intent, displays or causes or
permits to be displayed a forged, counterfeit, or false disabled
person placard, is subject to the issuance of a notice of parking
violation imposing a civil penalty of not less than two hundred fifty
dollars ($250) and not more than one thousand dollars ($1,000), for
which enforcement shall be governed by the procedures set forth in
Article 3 (commencing with Section 40200) of Chapter 1 of Division 17
or is guilty of a misdemeanor punishable by imprisonment in a county
jail for six months, a fine of not less than two hundred fifty
dollars ($250) and not more than one thousand dollars ($1,000), or
both that fine and imprisonment, which penalty shall not be
suspended.
(d) For purposes of subdivision (b) or (c), "disabled person
placard" means a placard issued pursuant to Section 22511.55 or
22511.59.
(e) A person who, with intent to prejudice, damage, or defraud,
commits any of the following acts is guilty of an infraction, and
upon conviction thereof shall be punished by a fine of not less than
one hundred dollars ($100) and not more than two hundred fifty
dollars ($250) for a first offense, not less than two hundred fifty
dollars ($250) and not more than five hundred dollars ($500) for a
second offense, and not less than five hundred dollars ($500) and not
more than one thousand dollars ($1,000) for a third or subsequent
offense, which penalty shall not be suspended:
(1) Forges, counterfeits, or falsifies a Clean Air Sticker or a
comparable clean air sticker relating to high occupancy vehicle lane
privileges provided for by a foreign jurisdiction, or forges,
counterfeits, or falsifies a Clean Air Sticker with intent to
represent it as issued by the department.
(2) Passes, or attempts to pass, as true and genuine, a false,
forged, or counterfeit Clean Air Sticker knowing it to be false,
forged, or counterfeited.
(3) Acquires, possesses, sells, or offers for sale a counterfeit
Clean Air Sticker.
(4) Acquires, possesses, sells, or offers for sale a genuine Clean
Air Sticker separate from the vehicle for which the department
issued that sticker.
(f) As used in this section, "Clean Air Sticker" means a label or
decal issued pursuant to Sections 5205.5 and 21655.9.
SEC. 8. Section 5200 of the Vehicle
Code is amended to read:
5200. (a) When two license plates are issued by the department
for use upon a vehicle, they shall be attached to the vehicle for
which they were issued, one in the front and the other in the rear.
(b) When only one license plate is issued for use upon a vehicle,
it shall be attached to the rear thereof, unless the license plate is
issued for use upon a truck tractor, in which case the license plate
shall be displayed in accordance with Section 4850.5.
(c) For purposes of this section, "license plate" includes both
temporary and permanent license plates.
SEC. 9. Section 5202.5 is added to the
Vehicle Code , to read:
5202.5. Upon receipt of permanent license plates, the owner of a
vehicle shall replace any temporary license plates with the permanent
license plates and shall destroy the temporary license plates in
accordance with instructions issued by the department.
SEC. 3. SEC. 10. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.