BILL NUMBER: AB 1627 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY MARCH 18, 2014
INTRODUCED BY Assembly Member Gomez
FEBRUARY 10, 2014
An act to add Section 6102 to the Government Code, and to
amend Section 1685 of the Vehicle Code, relating to state
government.
LEGISLATIVE COUNSEL'S DIGEST
AB 1627, as amended, Gomez. Fees for state services.
Existing
(1) Existing law prohibits an
officer of the state from performing an official service, unless the
fees prescribed by law for the performance of the service have been
paid, except as specified.
This bill would prohibit, except as specified, an individual,
business, or other private entity from charging a fee for performing
or facilitating the performance of a service that the state performs
for the public without a cost or fee, unless the individual,
business, or other private entity discloses that the state does not
charge a fee for providing that service.
(2) Existing law authorizes the Department of Motor Vehicles to
establish contracts for electronic programs that allow qualified
private industry partners to join the department in providing
services that include processing and payment programs for vehicle
registration and titling transactions.
This bill would require, if a qualified private industry partner
is providing a service or a similar service for a fee that the
department provides without charging a fee, a requirement to disclose
to a customer that the department provides that service or similar
service without charging a fee, as specified. This bill also makes a
technical change.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6102 is added to the Government Code, to read:
6102. (a) Notwithstanding any other law, an individual, business,
or other private entity shall not charge a fee for performing or
facilitating the performance of a service that the state performs for
the public without a cost or fee, unless the individual, business,
or other private entity discloses that the state does not charge a
fee for providing that service.
(b) The requirements of subdivision (a) shall not apply to a
membership-based organization providing a service to its members.
SEC. 2. Section 1685 of the Vehicle
Code is amended to read:
1685. (a) In order to continue improving the quality of products
and services it provides to its customers, the department, in
conformance with Article 4 (commencing with Section 19130) of Chapter
5 of Part 2 of Division 5 of Title 2 of the Government Code, may
establish contracts for electronic programs that allow qualified
private industry partners to join the department in providing
services that include processing and payment programs for vehicle
registration and titling transactions.
(b) (1) The department may enter into contractual agreements with
qualified private industry partners. There are the following three
types of private industry partnerships authorized under this section:
(A) First-line business partner is an industry partner that
receives data directly from the department and uses it to complete
registration and titling activities for that partner's own business
purposes.
(B) First-line service provider is an industry partner that
receives information from the department and then transmits it to
another authorized industry partner.
(C) Second-line business partner is a partner that receives
information from a first-line service provider.
(2) The private industry partner contractual agreements shall
include the following minimum requirements:
(A) Filing of an application and payment of an application fee, as
established by the department.
(B) Submission of information, including, but not limited to,
fingerprints and personal history statements, focusing on and
concerning the applicant's character, honesty, integrity, and
reputation as the department may consider necessary.
(C) Posting a bond in an amount consistent with Section 1815.
(D) If the qualified private industry partner is providing a
service or a similar service for a fee that the department provides
without charging a fee, a requirement to disclose to a customer that
the department provides that service or similar service without
charging a fee. If a qualified private industry partner is providing
the service or similar service to a customer in person, then the
disclosure required pursuant to this subparagraph shall be in
writing. If a qualified private industry partner is providing the
service or similar service to a customer on an Internet Web site,
then the disclosure required pursuant to this subparagraph shall be
in a conspicuous place on the Internet Web site.
(3) The department shall, through regulations, establish any
additional requirements for the purpose of safeguarding privacy and
protecting the information authorized for release under this section.
(c) The director may establish, through the adoption of
regulations, the maximum amount that a qualified private industry
partner may charge its customers in providing the services authorized
under subdivision (a).
(d) The department shall charge a three-dollar ($3) transaction
fee for the information and services provided under subdivision (a).
The private industry partner may pass the transaction fee to the
customer, but the total charge to a customer may not exceed the
amount established by the director under subdivision (c).
(e) All fees collected by the department pursuant to subdivision
(d) shall be deposited in the Motor Vehicle Account. On January 1 of
each year, the department shall adjust the fee in accordance with the
California Consumer Price Index. The amount of the fee shall be
rounded to the nearest whole dollar, with amounts equal to, or
greater than, fifty cents ($0.50) rounded to the next highest whole
dollar.
(f) The department shall adopt regulations and procedures that
ensure adequate oversight and monitoring of qualified private
industry partners to protect vehicle owners from the improper use of
vehicle records. These regulations and procedures shall include
provisions for qualified private industry partners to periodically
submit records to the department, and the department shall review
those records as necessary. The regulations shall also include
provisions for the dedication of department resources to program
monitoring and oversight; the protection of confidential records in
the department's files and databases; and the duration and nature of
the contracts with qualified private industry partners.
(g) The department shall, annually, by October 1, provide a report
to the Legislature that shall include all of the following
information gathered during the fiscal year immediately preceding the
report date:
(1) Listing of all qualified private industry partners, including
names and business addresses.
(2) Volume of transactions, by type, completed by business
partners.
(3) Total amount of funds, by transaction type, collected by
business partners.
(4) Total amount of funds received by the department.
(5) Description of any fraudulent activities identified by the
department.
(6) Evaluation of the benefits of the program.
(7) Recommendations for any administrative or statutory changes
that may be needed to improve the program.
(h) Nothing in this section impairs or limits
This section shall not impair or limit the authority
provided in Section 4610 or Section 12155 of the Insurance Code.