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