BILL ANALYSIS Ó
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| | AB 2107|
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THIRD READING
Bill No: AB 2107
Author: Frazier (D)
Introduced:2/17/16
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 6/28/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Leyva, McGuire,
Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Galgiani
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 78-0, 5/31/16 - See last page for vote
SUBJECT: Department of Motor Vehicles: electronic vehicle
registration services: interstate carrier
partnership
SOURCE: Author
DIGEST: This bill makes permanent a Department of Motor
Vehicles (DMV) pilot program for interstate carrier
registration.
ANALYSIS:
Existing law:
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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
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
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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
movement.
2)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)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
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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.
Related/Prior 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, 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.:YesLocal: No
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According to the Senate Appropriations Committee:
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)
Unknown ongoing DMV savings by reducing field office workload
associated with manual in-person transactions. (Motor Vehicle
Account)
SUPPORT: (Verified8/11/16)
California Trucking Association
OPPOSITION: (Verified8/11/16)
None received
ASSEMBLY FLOOR: 78-0, 5/31/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gray, Grove, Hadley, Roger Hernández,
Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,
Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,
Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,
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Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas,
Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,
Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Gordon, Harper
Prepared by:Erin Riches / T. & H. / (916) 651-4121
8/15/16 20:27:04
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