California Legislature—2015–16 Regular Session

Assembly BillNo. 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.


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:

P2    1


Section 1685 of the Vehicle Code is amended to



(a) In order to continue improving the quality of products
4and services it provides to its customers, the department, in
5conformance with Article 4 (commencing with Section 19130) of
6Chapter 5 of Part 2 of Division 5 of Title 2 of the Government
7Code, may establish contracts for electronic programs that allow
8qualified private industry partners to join the department in
9providing services that include processing and payment programs
10forbegin delete vehicle registration and titling transactions.end deletebegin insert all of the following:end insert

begin insert

11(1) Vehicle registration and titling transactions.

end insert
begin insert

12(2) Driver’s license renewals.

end insert
begin insert

13(3) Eyesight and hearing tests.

end insert
begin insert

14(4) Fingerprinting services.

end insert
begin insert

15(5) Photography services.

end insert

16(b) (1) The department may enter into contractual agreements
17with qualified private industrybegin delete partners. There are theend deletebegin insert partners to
18provide the services authorized under subdivision (a). Theend insert

19 following three types of private industry partnershipsbegin insert areend insert
20 authorized under this section:

21(A) begin deleteFirst-line end deletebegin insertA first-line end insertbusiness partner is an industry partner
22that receives data directly from the department and uses it to
23completebegin delete registration and titling activitiesend deletebegin insert an activity authorized
24in subdivision (a),end insert
for that partner’s own business purposes.

25(B) begin deleteFirst-line end deletebegin insertA first-line end insertservice provider is an industry partner
26that receives information from the department and then transmits
27it to another authorized industry partner.

28(C) begin deleteSecond-line end deletebegin insertA second-line end insertbusiness partner is a partner that
29receives information from a first-line service provider.

30(2) The private industry partner contractual agreements shall
31include the following minimum requirements:

32(A) Filing of an application and payment of an application fee,
33as established by the department.

34(B) Submission of information, including, but not limited to,
35fingerprints and personal history statements, focusing on and
36concerning the applicant’s character, honesty, integrity, and
37reputation as the department may consider necessary.

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

P3    1(3) Thebegin delete department shall, through regulations,end deletebegin insert department, by
2regulation, shallend insert
establish any additional requirements for the
3purpose of safeguarding privacy and protecting the information
4authorized for release under this section.

5(c) Thebegin delete director may establish,end deletebegin insert director,end insert through the adoption
6of regulations,begin insert may establishend insert the maximum amount that a qualified
7private industry partner may charge its customers in providing the
8services authorized under subdivision (a).

9(d) The department shall charge a three-dollar ($3) transaction
10fee forbegin delete theend deletebegin insert each category ofend insert information and services provided
11under subdivision (a). The private industry partner may pass the
12transaction fee to the customer, but the total charge to a customer
13begin insert for any category of information and servicesend insert may not exceed the
14amount established by the director under subdivision (c).

15(e) All fees collected by the department pursuant to subdivision
16(d) shall be deposited in the Motor Vehicle Account. On January
171 of each year, the department shall adjust the fee in accordance
18with the California Consumer Price Index. The amount of the fee
19shall be rounded to the nearest whole dollar, with amounts equal
20to, or greater than, fifty cents ($0.50) rounded to the next highest
21whole dollar.

22(f) The department shall adoptbegin insert or reviseend insert regulations and
23procedures that ensure adequate oversight and monitoring of
24qualified private industry partners to protect vehicle ownersbegin insert and
25other department customersend insert
from the improper use of vehicle
26begin delete records.end deletebegin insert records or other information provided to the qualified
27industry partner pursuant to this section.end insert
These regulations and
28procedures shall include provisions for qualified private industry
29partners to periodically submit records to the department, and the
30department shall review those records as necessary. The regulations
31shall also include provisions for the dedication of department
32resources to program monitoring and oversight; the protection of
33confidential records in the department’s files and databases; and
34the duration and nature of the contracts with qualified private
35industry partners.

36(g) begin deleteThe department shall, annually, by October 1, end delete
37begin insertNotwithstanding Section 10231.5 of the Government Code, by
38October 1 of each year, the department shall end insert
provide a report to
39the Legislature that shall include all of the following information
P4    1gathered during the fiscal year immediately preceding the report

3(1) Listing of all qualified private industry partners, including
4names and business addresses.

5(2) Volume of transactions, by type, completed by business

7(3) Total amount of funds, by transaction type, collected by
8business partners.

9(4) Total amount of funds received by the department.

10(5) Description of any fraudulent activities identified by the

12(6) Evaluation of the benefits of the program.

13(7) Recommendations for any administrative or statutory
14changes that may be needed to improve the program.

begin insert

15(h) A report submitted under subdivision (g) shall be submitted
16pursuant to Section 9795 of the Government Code.

end insert
begin delete

17(h) Nothing in this section impairs or limits

end delete

18begin insert(i)end insertbegin insertend insertbegin insertThis section does not impair or limit end insertthe authority provided
19in Section 4610 or Section 12155 of the Insurance Code.