BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 2107 Hearing Date: 6/28/2016
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|Author: |Frazier |
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|Version: |2/17/2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Erin Riches |
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SUBJECT: Department of Motor Vehicles: electronic vehicle
registration services: interstate carrier partnership
DIGEST: This bill makes permanent a Department of Motor
Vehicles (DMV) pilot program for interstate carrier
registration.
ANALYSIS:
Existing law:
1)Authorizes DMV to enter into contractual agreements with
interstate carrier partners to allow them to provide
electronic vehicle registration services and titling
transactions.
2)Authorizes DMV to establish, through regulations, the maximum
amount that a partner may charge its customers for these
services.
3)Requires DMV to adopt regulations and procedures to carry out
the program.
This bill:
1)Authorizes DMV to enter into an interstate carrier partnership
if the partner meets the following requirements:
a) Agrees to provide electronic vehicle registration
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services using a DMV registration system or a system
approved by DMV
b) Maintains, protects, and issues vehicle registration
documents and indicia as applicable on behalf of DMV to
its customers
c) Demonstrates International Registration Plan knowledge
proficiency, as determined by DMV and established in DMV
regulations
d) Meets qualification standards established by DMV
2)Authorizes DMV to enter into contractual agreements with
interstate carrier partners that utilize the DMV registration
system or a system approved by DMV. Authorizes three types of
partnerships: a registration service, a vehicle leasing
company or vehicle rental company, and a motor carrier
association.
3)Authorizes DMV to adopt regulations to carry out this bill,
including but not limited to program structure, fees,
financial responsibility, compliance requirements, adequate
oversight and monitoring, safeguards for privacy and
protecting information authorized for release in this bill,
minimum transaction requirements, and performance standards to
ensure accuracy and efficiency.
4)Authorizes DMV to establish, through regulations, the maximum
amount that an interstate carrier may charge its customers in
providing electronic registration services.
COMMENTS:
1.Purpose. The author states that similar to the Business
Partner Automation Program (BPA) (see Comment #2), this bill
will enable DMV to make permanent its pilot Interstate Carrier
Program and authorize it to enter into contracts with
interstate carrier partners to provide electronic vehicle
registration services. This bill would authorize these
partners - leasing companies, registration agents, and motor
carrier associations - to issue International Registration
Program (IRP) credentials to their customers once DMV has
adopted regulations. The author states that the success of
BPA demonstrates the value of public-private partnerships in
accomplishing regulatory compliance while meeting the needs of
economically significant industries. This bill will help
expedite the issuance of IRP credentials, lower costs to both
the state and to the trucking industry, and improve goods
AB 2107 (Frazier) Page 3 of ?
movement.
2.Background: BPA. BPA allows qualified industry partners to
process certain vehicle-related transactions, such as
registration cards, registration stickers, and certain license
plates, from their remote locations. Existing law limits the
program to specific types of transactions and specific types
of partner entities. This program helps partners provide
"one-stop" service to their customers and reduces trips to
DMV. Partners include companies such as dealers, smog check
stations, auto dismantlers, rental car companies, and leasing
companies.
3.Background: IRP. IRP is a federally supported program to
facilitate registration and operation of trucks among states
and Canadian provinces. IRP member jurisdictions collect
registration fees from their "home-based" interstate trucking
companies on behalf of each member jurisdiction in which the
companies operate and must register. These fees are then
apportioned to each member jurisdiction based on the
percentage of the carrier's operations conducted in that
jurisdiction.
4.Codifying a DMV pilot program. IRP transactions were becoming
increasingly complex due to federal requirements, resulting in
lengthy transaction times in field offices. In 2010, DMV
centralized IRP processing in headquarters in an effort to
improve consistency and service levels. However, the trucking
industry often needs immediate service in locations far from
Sacramento, so DMV created a pilot program, the Interstate
Carrier Program, overseen by headquarters. This program
allows approved providers to access DMV's IRP software to
process interstate registration credentials. This in turn
enables industry participants (e.g., interstate trucking
companies) to obtain local service in a timely manner without
negatively impacting DMV field offices. This bill will give
DMV the legal authority to develop a BPA-like framework for
formalizing and regulating the partnerships established under
the pilot program. The success of BPA has demonstrated the
value of public-private partnerships in accomplishing
regulatory compliance with California's motor vehicle-related
standards.
Assembly Votes:
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Floor: 78-0
Appr: 20-0
Trans: 16-0
RELATED LEGISLATION
AB 1215 (Blumenfield, Chapter 329, Statutes of 2011) - requires
new car dealers to participate in a program to electronically
title and register vehicles that they sell and to post specified
warning notices on some used cars.
SB 46 (Polanco, Chapter 127, Statutes of 2001) - established the
BPA program, allowing qualified private industry partners to
process specific vehicle-related transactions and electronically
transmit the transaction information to DMV's vehicle
registration database.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 22, 2016.)
SUPPORT:
California Trucking Association
OPPOSITION:
None received
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