California Legislature—2015–16 Regular Session

Assembly BillNo. 605


Introduced by Assembly Member Gatto

February 24, 2015


An act to amend Section 1685 of the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 605, as introduced, Gatto. Department of Motor Vehicles: electronic programs: contracts.

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.

This bill would make a technical, nonsubstantive change to these provisions.

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

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

P1    1

SECTION 1.  

Section 1685 of the Vehicle Code is amended to
2read:

3

1685.  

(a) In orderbegin insert for the departmentend insert to continue improving
4the quality of products and services it provides to its customers,
5the department, in conformance with Article 4 (commencing with
6Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of
7the Government Code, may establish contracts for electronic
P2    1programs that allow qualified private industry partners to join the
2department in providing services that include processing and
3payment programs for vehicle registration and titling transactions.

4(b) (1) The department may enter into contractual agreements
5with qualified private industry partners. There are the following
6three types of private industry partnerships authorized under this
7section:

8(A) First-line business partner is an industry partner that receives
9data directly from the department and uses it to complete
10registration and titling activities for that partner’s own business
11purposes.

12(B) First-line service provider is an industry partner that receives
13information from the department and then transmits it to another
14authorized industry partner.

15(C) Second-line business partner is a partner that receives
16information from a first-line service provider.

17(2) The private industry partner contractual agreements shall
18include the following minimum requirements:

19(A) Filing of an application and payment of an application fee,
20as established by the department.

21(B) Submission of information, including, but not limited to,
22fingerprints and personal history statements, focusing on and
23concerning the applicant’s character, honesty, integrity, and
24reputation as the department may consider necessary.

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

26(3) The department shall, through regulations, establish any
27additional requirements for the purpose of safeguarding privacy
28and protecting the information authorized for release under this
29section.

30(c) The director may establish, through the adoption of
31regulations, the maximum amount that a qualified private industry
32partner may charge its customers in providing the services
33authorized under subdivision (a).

34(d) The department shall charge a three-dollar ($3) transaction
35fee for the information and services provided under subdivision
36(a). The private industry partner may pass the transaction fee to
37the customer, but the total charge to a customer may not exceed
38the amount established by the director under subdivision (c).

39(e) All fees collected by the department pursuant to subdivision
40(d) shall be deposited in the Motor Vehicle Account. On January
P3    11 of each year, the department shall adjust the fee in accordance
2with the California Consumer Price Index. The amount of the fee
3shall be rounded to the nearest whole dollar, with amounts equal
4to, or greater than, fifty cents ($0.50) rounded to the next highest
5whole dollar.

6(f) The department shall adopt regulations and procedures that
7ensure adequate oversight and monitoring of qualified private
8industry partners to protect vehicle owners from the improper use
9of vehicle records. These regulations and procedures shall include
10provisions for qualified private industry partners to periodically
11submit records to the department, and the department shall review
12those records as necessary. The regulations shall also include
13provisions for the dedication of department resources to program
14monitoring and oversight; the protection of confidential records
15in the department’s files and databases; and the duration and nature
16of the contracts with qualified private industry partners.

17(g) The department shall, annually, by October 1, provide a
18report to the Legislature that shall include all of the following
19information gathered during the fiscal year immediately preceding
20the report date:

21(1) Listing of all qualified private industry partners, including
22names and business addresses.

23(2) Volume of transactions, by type, completed by business
24partners.

25(3) Total amount of funds, by transaction type, collected by
26business partners.

27(4) Total amount of funds received by the department.

28(5) Description of any fraudulent activities identified by the
29department.

30(6) Evaluation of the benefits of the program.

31(7) Recommendations for any administrative or statutory
32changes that may be needed to improve the program.

33(h) begin deleteNothing in this section impairs or limits end deletebegin insertThis section does
34not impair or limit end insert
the authority provided in Section 4610 or
35Section 12155 of the Insurance Code.



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