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  








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            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

          
          

                                      -- END --
          









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