Amended in Assembly April 23, 2014

Amended in Assembly April 21, 2014

Amended in Assembly March 18, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1627

Introduced by Assembly Member Gomez

February 10, 2014

An act to begin delete add Section 6102 to the Government Code, and to end delete amend Section 1685 of the Vehicle Code, relating to begin delete state government. end delete begin insert vehicles. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1627, as amended, Gomez. begin delete Fees for state services. end delete begin insert Vehicles: qualified industry partners. end insert

begin delete

(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.

end delete begin delete

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.

end delete begin delete

(2) Existing

end delete

begin insert Existing end insert 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: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin delete

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.

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

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) This section shall not impair or limit the authority provided
in Section 4610 or Section 12155 of the Insurance Code.