BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2107 (Frazier) - Department of Motor Vehicles: electronic
vehicle registration services: interstate carrier partnership
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|Version: February 17, 2016 |Policy Vote: T. & H. 10 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 2107 would authorize the Department of Motor
Vehicles (DMV) to enter into an interstate carrier partnership
to provide electronic vehicle registration services for
commercial trucks under the federal International Registration
Plan (IRP).
Fiscal
Impact:
One-time DMV costs of approximately $390,000 to develop and
adopt regulations, execute contracts with partners, develop
security protocols, and make necessary systems changes.
(Motor Vehicle Account)
Ongoing DMV costs of approximately $250,000 to process
applications. These costs would be fully offset by fees
established by regulations. (Motor Vehicle Account)
AB 2107 (Frazier) Page 1 of
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Unknown ongoing DMV savings by reducing field office workload
associated with manual in-person transactions. (Motor Vehicle
Account)
Background: Existing law establishes the Business Partner Automation (BPA)
program, which authorizes DMV to enter into contracts that allow
private industry partners to process specific vehicle-related
transactions, such as vehicle registration and titling, either
directly or through a service provider. Existing law requires
licensed new motor vehicle dealers to participate in the BPA
program and electronically process all DMV transactions related
to vehicle sales and leases. The BPA program is generally not
available for commercial vehicle transactions, except on a pilot
basis as noted below.
The IRP is a federally-supported program that facilitates
interstate trucking operations across the United States and the
Canadian provinces. 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 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. Under the pilot, authorized vendors can issue IRP
credentials and documents to motor carriers and record
transactions on DMV systems that are then reviewed by the
department for accuracy and completeness. This pilot program
has allowed the trucking industry to obtain local service in a
timely manner without negatively impacting processing times in
DMV field offices. In the span of five years, over 75,000 IRP
transactions will have been processed by 59 program
participants.
AB 2107 (Frazier) Page 2 of
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Proposed Law:
AB 2107 would authorize DMV to enter into an interstate
carrier partnership to provide electronic vehicle registration
services through an interstate carrier partner that does all of
the following:
Agrees to provide electronic vehicle registration
services with specified capabilities through a DMV
registration system or a system approved by DMV.
Maintains, protects, and issues apportioned vehicle
registration documents and applicable indicia on behalf of
DMV to its customers.
Demonstrates IRP knowledge proficiency, as determined by
DMV and established through regulations
Meets qualification standards established by DMV through
regulations.
The bill authorizes DMV to enter into contractual agreements
with the following interstate carrier partners that utilize the
DMV apportioned registration system or a system approved by DMV:
(1) a registration service; (2) a vehicle leasing or rental
company; or (3) a motor carrier association. The partner must
submit an application to DMV on the form specified in
regulations and include any other required information.
AB 2107 would also require DMV to adopt regulations for purposes
of establishing the program that include the following: program
administration structure, fees, financial responsibility,
compliance requirements, adequate oversight and monitoring,
safeguards for privacy and protecting information authorized for
release, minimum transaction requirements, and performance
standards to ensure accuracy and efficiency. DMV regulations
may also specify the maximum amount that an interstate carrier
may charge its customers in providing electronic registration
services.
Related
Legislation: AB 1215 (Blumenfield), Chap. 329/2011, 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), Chap. 127/2001), established the BPA program,
allowing qualified private industry partners to process specific
vehicle-related transactions and electronically transmit the
AB 2107 (Frazier) Page 3 of
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transaction information to DMV's vehicle registration database.
Staff
Comments: This bill builds on the initial success of the pilot
program and establishes a permanent program providing for the
electronic registration of commercial vehicles through
partnerships with participants in the federal IRP. DMV will
incur initial costs to formally establish the program, but
ongoing costs will be fully offset by fees, and the program is
likely to result in ongoing DMV savings by moving transactions
out of field offices.
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