BILL ANALYSIS �
AB 1291
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Date of Hearing: May 27, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1291 (Davis) - As Amended: May 18, 2011
Policy Committee:
TransportationVote:13-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill allows the Department of Motor Vehicles (DMV) to
pursue the use and development of existing or emerging
technologies for the purpose of maximizing the efficient
delivery of vehicle registration services and achieving cost
savings for business partners, service providers, or other
customer groups. More specifically, this bill:
1)This bill requires the Department of Motor Vehicles (DMV) to
use solutions-based procurement, which is to include a
requirement that a vendor pay for the costs of vehicle
registration and titling services and other services provided
by the vendor.
2)Authorizes the department to use a savings-based compensation
model.
FISCAL EFFECT
Unknown, but potentially significant cost to DMV. The
department reports difficulty interpreting the requirement that
vendors pay for all costs of the services provided, which may
result in reluctance or refusal on the part of vendors with
which DMV seeks to contract for registration and titling
services, which would result in significant cost pressures to
DMV to complete such activities itself. (Motor Vehicle
Account.) The author indicates this
COMMENTS
1)Rationale. The author intends this bill to allow DMV to work
AB 1291
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with private-sector technology firms to develop more-efficient
and cost-effective vehicle registration and titling processes.
2)Background -- DMV's Business Partner Program. Statute
authorizes DMV to enter into contracts with qualified private
industry partners for the purpose of processing vehicle
registration and titling transactions. In response, DMV
established the Business Partner Automation (BPA) Program.
Statute requires the department to establish regulations
necessary to support the BPA Program, in which business
partners are authorized to process and issue validated
registration cards, full year registration stickers and
automobile and commercial vehicle license plates.
3)Solutions-based Procurement, Savings-based Compensation . The
bill requires use of solutions-based procurement and
savings-based compensation. However, the bill defines neither
term; nor does it describe the terms in intent language. Bill
proponents provided a document from the Franchise Tax Board
(Enterprise Data to Revenue Project Update, March 2011) that
describes the solution-based procurement model as having the
following primary elements:
a) Requirements are limited to those that are business
related.
b) The state provides business problems and a high-level
vision for a solution, rather than a detailed solution.
c) Bidders provide solutions.
4)Related Legislation. SB 1453 (Price, 2010) would have allowed
DMV to contract with a private vendor to explore the use of
electronic vehicle license plates The bill passed the Senate
25-0 but was held by this committee. The Appropriations
Committee analysis of SB 1453 identified potential costs
possibly in excess of $150,000 and noted: there is nothing in
existing law prohibiting DMV from studying new technologies
and products that would help the state achieve efficiencies
and cost-savings.
5)Support . This bill is supported by Smart Plate Mobil, a maker
of digital license plates.
6)There is no formal opposition registered to this bill.
AB 1291
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Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081