California Legislature—2015–16 Regular Session

Assembly Bill No. 1714

Introduced by Assembly Member Brough

January 26, 2016

An act to amend Section 1685 of the Vehicle Code, relating to the Department of Motor Vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 1714, as introduced, Brough. Department of Motor Vehicles: services: third-party contracts.

Existing law authorizes the Department of Motor Vehicles, in conformance with certain provisions in existing law relating to personal services contracts with private parties, to establish contracts for electronic programs that allow qualified private industry partners to join the department to provide title and vehicle registration transactions. Existing law authorizes the department to enter into contractual agreements with 3 specified types of private industry partners for this purpose, and to charge a transaction fee for the information and services provided.

This bill would expand the services for which the department would be authorized to establish contracts with private industry partners as described above, to include driver’s license renewals, eyesight and hearing tests, and fingerprinting and photography services. The bill would make other technical and conforming changes.

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

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 begin delete vehicle registration and titling transactions. end delete begin insert all of the following: end insert

begin insert

(1) Vehicle registration and titling transactions.

end insert begin insert

(2) Driver’s license renewals.

end insert begin insert

(3) Eyesight and hearing tests.

end insert begin insert

(4) Fingerprinting services.

end insert begin insert

(5) Photography services.

end insert

(b) (1) The department may enter into contractual agreements
with qualified private industry begin delete partners. There are the end delete begin insert partners to
provide the services authorized under subdivision (a). The end insert
following three types of private industry partnerships begin insert are end insert
authorized under this section:

(A)  begin delete First-line end delete begin insert A first-line end insert business partner is an industry partner
that receives data directly from the department and uses it to
complete begin delete registration and titling activities end delete begin insert an activity authorized
in subdivision (a), end insert for that partner’s own business purposes.

(B)  begin delete First-line end delete begin insert A first-line end insert service provider is an industry partner
that receives information from the department and then transmits
it to another authorized industry partner.

(C)  begin delete Second-line end delete begin insert A second-line end insert 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 begin delete department shall, through regulations, end delete begin insert department, by
regulation, shall end insert establish any additional requirements for the
purpose of safeguarding privacy and protecting the information
authorized for release under this section.

(c) The begin delete director may establish, end delete begin insert director, end insert through the adoption
of regulations, begin insert may establish end insert 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 begin delete the end delete begin insert each category of end insert 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
begin insert for any category of information and services end insert 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 begin insert or revise end insert regulations and
procedures that ensure adequate oversight and monitoring of
qualified private industry partners to protect vehicle owners begin insert and
other department customers end insert from the improper use of vehicle
begin delete records. end delete begin insert records or other information provided to the qualified
industry partner pursuant to this section. end insert 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)  begin delete The department shall, annually, by October 1, end delete
begin insert Notwithstanding Section 10231.5 of the Government Code, by
October 1 of each year, the department shall end insert 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.

begin insert

(h) A report submitted under subdivision (g) shall be submitted
pursuant to Section 9795 of the Government Code.

end insert begin delete

(h) Nothing in this section impairs or limits

end delete

begin insert (i) end insert begin insert   end insert begin insert This section does not impair or limit end insert the authority provided
in Section 4610 or Section 12155 of the Insurance Code.