BILL ANALYSIS Ó AB 2107 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2107 (Frazier) - As Introduced February 17, 2016 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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