BILL NUMBER: AB 1627 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 6, 2014
AMENDED IN ASSEMBLY APRIL 23, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY MARCH 18, 2014
INTRODUCED BY Assembly Member Gomez
FEBRUARY 10, 2014
An act to amend Section 1685 11406
of the Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 1627, as amended, Gomez. Vehicles: qualified industry
partners. registration services: disclosure of service
fees.
Existing law defines the term "registration service" for purposes
of the Vehicle Code and excludes from that definition certain
activities. Existing law prohibits a person from acting as a
registration service, engaging in the business of soliciting or
receiving any application for the registration, renewal of
registration, or transfer of registration or ownership of any vehicle
of a type subject to registration under the Vehicle Code, or of
soliciting or receiving an application for specified motor carrier
permits, or transmitting or presenting any of those documents to the
department, if any compensation is solicited or received for the
service, without a license or temporary permit issued by the
Department of Motor Vehicles. Under existing law, a registration
service authorized by the department to engage in those activities is
required to, among other things, display prominently at its place of
business a sign indicating that the registration service is not a
branch of the department and inform each customer of that fact. A
violation of those provisions is a misdemeanor.
This bill would additionally require a registration service
licensed by the department to engage in the activities described
above to provide a disclosure to each customer that certain services
may be provided by the department without an additional fee, as
specified. By expanding the scope of an existing crime, the bill
would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11406 of the Vehicle
Code is amended to read:
11406. (a) Every registration service shall keep accurate
business records containing all of the following information:
(1) The name, address, and license number of the registration
service and the name and address of every employee who performs
registration work.
(2) The name and address of each client for whom registration work
was performed.
(3) The identity of every vehicle by year, make, type, license
number, and vehicle identification number on which registration work
was performed.
(4) The amount of registration fees or payments collected for each
vehicle on which registration work was performed, including the
method of payment to the registration service.
(5) The amount of registration fees or payments submitted to the
department for each vehicle on which registration work was performed,
including the date and method of payment to the department.
(6) The amount of any refunds or additional charges on
registration fees or payments collected for each vehicle on which
registration work was performed, including the date and method of
payment of the refund or additional charge by or to the client, the
registration service, or the department.
(7) The name, signature, or initials of each employee performing
work on each transaction and the date the work was done.
(8) The cost to each client for the registration work performed on
each of the client's vehicles or to obtain a motor carrier permit.
(9) For each motor carrier for which motor carrier permit work was
performed, the carrier identification number, business type,
business address, carrier type, activities, and number of vehicles.
(10) For each motor carrier for which motor carrier permit work
was performed, the amount of fees or payment collected and the method
of payment.
(11) For each motor carrier for which motor carrier permit work
was performed, the amount of fees or payment submitted to the
department, including the date submitted and the method of payment to
the department.
(b) As an alternative to maintaining the records required by
paragraphs (1) to (11), inclusive, of subdivision (a), a registration
service may retain a copy of the listing sheet approved by the
department for transmitting registration or motor carrier permit
documents to the department.
(c) Every registration service shall provide each customer with a
document containing all of the information required by subdivision
(a) relative to that customer's transaction, excluding paragraph (7)
and excluding the addresses of employees and other customers' names
and addresses. This requirement does not apply to transactions for
customers of a dealer or dismantler.
(d) Every registration service shall display prominently at its
place of business a sign indicating that the service is not a branch
of the department and shall inform each customer of that fact.
(e) Every registration service shall provide a disclosure to each
customer that the services described in Section 11400 may be provided
by the department without an additional fee. If a registration
service is providing a service described in Section 11400 in person,
the disclosure required pursuant to this subdivision shall be in
writing. If a registration service is providing a service described
in Section 11400 on an Internet Web site, the disclosure required
pursuant to this subdivision shall be in a conspicuous place on the
Internet Web site.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. 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.