BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2107


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          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2107 (Frazier) - As Introduced February 17, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the DMV to enter into agreements with  
          qualified private industry partners to carry out certain  
          electronic registration transactions related to the  
          International Registration Plan (IRP)-a federally-supported  
          program that facilitates interstate trucking operations across  
          the United States and the Canadian provinces. 










                                                                    AB 2107


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          FISCAL EFFECT:


          DMV will incur additional costs of around $400,000 in the first  
          year and $250,000 ongoing to develop regulations, execute  
          contracts, develop security protocols, revise forms and manuals,  
          and process applications. Though some of these costs will be  
          borne by the department initially, all costs should be recovered  
          through fees to be established by the department through  
          regulations. 


          COMMENTS:


          1)Background. Under DMV's Business Partner Automation (BPA)  
            program, the department has entered into contracts that allow  
            private industry partners to process specific vehicle-related  
            transactions, such as vehicle registration and titling. These  
            business partners communicate with DMV either directly or  
            through a service provider to complete a transaction.


            Under the IRP program, member jurisdictions collect vehicle  
            registration fees from their home-based interstate trucking  
            companies on behalf of each member jurisdiction in which the  
            companies operate. Fees collected under the IRP are then  
            apportioned to each member jurisdiction, based on the  
            proportion of the carrier's operations in that jurisdiction.  
            In order to participate in this apportioned registration  
            program, motor carriers must register and obtain IRP  
            credentials from their home jurisdiction.


            In 2011, DMV initiated a pilot program resembling the BPA  
            program to allow certain registration services to perform a  
            limited set of transactions related to the IRP on an  
            electronic platform. This pilot program has allowed the  
            trucking industry to obtain local service in a timely manner  








                                                                    AB 2107


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            without negatively impacting processing times in DMV field  
            offices. In five years, over 75,000 IRP transactions will have  
            been processed by 59 program participants.


          2)Purpose. AB 2107 makes the DMV's IRP pilot program permanent  
            and authorizes the department to adopt regulations to carry  
            out the program. According to the author, this bill will  
            ensure that the trucking industry has immediate and convenient  
            access to IRP credentialing, expediting the entry of  
            commercial motor vehicles into interstate trucking activities.  
             


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081