AB 1714, as amended, 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
begin delete renewals, eyesight and hearing tests, and fingerprinting and photography services. The bill would make
other technical and conforming changes.end delete
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1685 of the Vehicle Code is amended to
(a) In order to continue improving the quality of products
22and services it provides to its customers, the department, in
23conformance with Article 4 (commencing with Section 19130) of
24Chapter 5 of Part 2 of Division 5 of Title 2 of the Government
25Code, may establish contracts for electronic programs that allow
26qualified private industry partners to join the department in
27providing services that include processing and payment programs
28for all of the following:
29(1) Vehicle registration and titling transactions.
30(2) Driver’s license renewals.
31(3) Eyesight and hearing tests.
32(4) Fingerprinting services.
33(5) Photography services.
34(b) (1) The department may enter into contractual agreements
35with qualified private industry partners to provide the services
36authorized under subdivision (a). The following three types of
37private industry partnerships are authorized under this section:
38(A) A first-line business partner is an industry partner that
39receives data directly from the department and uses it to complete
P5 1 an activity authorized in subdivision (a), for that partner’s own
3(B) A first-line service provider is an industry partner that
4receives information from the department and then transmits it to
5another authorized industry partner.
6(C) A second-line business partner is a partner that receives
7information from a first-line service provider.
8(2) The private
industry partner contractual agreements shall
9include the following minimum requirements:
10(A) Filing of an application and payment of an application fee,
11as established by the department.
12(B) Submission of information, including, but not limited to,
13fingerprints and personal history statements, focusing on and
14concerning the applicant’s character, honesty, integrity, and
15reputation as the department may consider necessary.
16(C) Posting a bond in an amount consistent with Section 1815.
17(3) The department, by regulation, shall
establish any additional
18requirements for the purpose of safeguarding privacy and protecting
19the information authorized for release under this section.
20(c) The director, through the adoption of regulations, may
21establish the maximum amount that a qualified private industry
22partner may charge its customers in providing the services
23authorized under subdivision (a).
24(d) The department shall charge a three-dollar ($3) transaction
25fee for each category of information and services provided under
26subdivision (a). The private industry partner may pass the
27transaction fee to the customer, but the total charge to a customer
28for any category of information and services may not exceed the
29amount established by the director under subdivision (c).
30(e) All fees collected by the department pursuant to subdivision
31(d) shall be deposited in the Motor Vehicle Account. On January
321 of each year, the department shall adjust the fee in accordance
33with the California Consumer Price Index. The amount of the fee
34shall be rounded to the nearest whole dollar, with amounts equal
35to, or greater than, fifty cents ($0.50) rounded to the next highest
37(f) The department shall adopt
or revise regulations and
38procedures that ensure adequate oversight and monitoring of
39qualified private industry partners to protect vehicle owners and
40other department customers from the improper use of vehicle
P6 1records or other information provided to the qualified industry
2partner pursuant to this section. These regulations and procedures
3shall include provisions for qualified private industry partners to
4periodically submit records to the department, and the department
5shall review those records as necessary. The regulations shall also
6include provisions for the dedication of department resources to
7program monitoring and oversight; the protection of confidential
8 records in the department’s files and databases; and the duration
9and nature of the contracts with qualified private industry partners.
10(g) Notwithstanding Section 10231.5 of the Government Code,
11by October 1 of each year, the department shall provide a report
12to the Legislature that shall include all of the following information
13gathered during the fiscal year immediately preceding the report
15(1) Listing of all qualified private industry partners, including
16names and business addresses.
17(2) Volume of transactions, by type, completed by business
19(3) Total amount of funds, by transaction type, collected by
21(4) Total amount of funds received by the department.
22(5) Description of any fraudulent activities identified by the
24(6) Evaluation of the benefits of the program.
25(7) Recommendations for any administrative or statutory
26changes that may be needed to improve the program.
27(h) A report submitted under subdivision (g) shall be submitted
28pursuant to Section 9795 of the Government Code.
29(i) This section does not impair or limit the authority provided
30in Section 4610 or Section 12155 of the Insurance Code.