BILL NUMBER: AB 605	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Gatto

                        FEBRUARY 24, 2015

   An act to amend Section 4456.5 of the Vehicle Code, relating to
vehicles.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 605, as amended, Gatto. 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  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.   prohibit the electronic filing charge
from being used to pay for additional fees, goods, or services not
directly related to the electronic registration of a motor vehicle.
 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: yes.
State-mandated local program: 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
  provider  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.   be used to
pay for additional fees, goods, or services not directly related to
the electronic registration of a motor vehicle, including, but not
limited to, the receipt by the dealer of free or discounted goods,
services, or financial incentives.  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 does not prohibit a first-line service provider
from entering into contracts with dealers for products and services
unrelated to electronic vehicle registration services. 
  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.