BILL NUMBER: AB 605 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Gatto
FEBRUARY 24, 2015
An act to amend Section 1685 4456.5
of the Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 605, as amended, Gatto. Department of Motor Vehicles:
electronic programs: contracts. Dealer charges:
license plates.
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. Under existing law, a
dealer is authorized to charge the purchaser or lessee of a vehicle
certain charges, including 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 other
specified fees and services relating to first-line service providers.
This bill would make a technical, nonsubstantive change
to these provisions. specify that the filing charge
would only be for the fees and services identified, and would not
include any direct or indirect costs for unrelated first-line
provider services, as specified. Because a violation of these
provisions would constitute an infraction, this bill would impose a
state-mandated local program.
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: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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 , only
for providing license plate processing, postage, and the fees
and services authorized pursuant to subdivisions (a) and (d) of
Section 1685. The electronic filing charge shall not include any
direct or indirect costs for first-line provider services unrelated
to 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.
SEC. 2. 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.
SECTION 1. Section 1685 of the Vehicle Code is
amended to read:
1685. (a) In order for the department 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) 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) This section does not impair or limit the authority provided
in Section 4610 or Section 12155 of the Insurance Code.