Bill Text: CA AB1714 | 2015-2016 | Regular Session | Amended
Bill Title: Department of Motor Vehicles: services: third-party contracts.
Spectrum: Strong Partisan Bill (Republican 15-1)
Status: (Failed) 2016-11-30 - From committee without further action. [AB1714 Detail]
Download: California-2015-AB1714-Amended.html
BILL NUMBER: AB 1714 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 12, 2016
INTRODUCED BY Assembly Member Brough
( Coauthors: Assembly Members
Achadjian, Travis Allen, Gallagher,
Mathis, Mayes, Obernolte,
Olsen, Patterson, Steinorth, Wagner,
and Waldron )
( Coauthors: Senators
Anderson, Bates, Morrell, and Runner
)
JANUARY 26, 2016
An act to amend Section 1685 of add
Section 1686 to the Vehicle Code, relating to the Department of
Motor Vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 1714, as amended, Brough. Department of Motor Vehicles:
services: third-party contracts.
Existing law authorizes the Department of Motor Vehicles, in
conformance with certain provisions in existing law relating to
personal services contracts with private parties, to establish
contracts for electronic programs that allow qualified private
industry partners to join the department to provide title and vehicle
registration transactions. Existing law authorizes the department to
enter into contractual agreements with 3 specified types of private
industry partners for this purpose, and to charge a transaction fee
for the information and services provided.
This bill would expand the services for which the department would
be authorized to establish contracts with private industry partners
as described above, to include processing and payment programs
for driver's license renewals, eyesight and hearing
tests, and fingerprinting and photography services. The bill would
make other technical and conforming changes. renewals,
as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1686 is added to the
Vehicle Code , to read:
1686. (a) In order to continue to improve 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 driver's
license renewals pursuant to Section 12800.
(b) (1) The department may enter into contractual agreements with
qualified private industry partners to provide the services
authorized under subdivision (a). The following three types of
private industry partnerships are authorized under this section:
(A) A first-line business partner is an industry partner that
receives data directly from the department and uses it to complete an
activity authorized in subdivision (a), for that partner's own
business purposes.
(B) A first-line service provider is an industry partner that
receives information from the department and then transmits it to
another authorized industry partner.
(C) A 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.
(3) A private industry partner's contractual agreements shall be
met for purposes of this section if the private industry partner
satisfies the contractual agreements required in Section 1685.
(4) The department, by regulation, shall establish any additional
requirements for the purpose of safeguarding privacy and protecting
the information authorized for release under this section.
(c) The director, through the adoption of regulations, may
establish 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 each category of 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
for any category of information and services 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 or revise regulations and
procedures that ensure adequate oversight and monitoring of qualified
private industry partners to protect the department's customers from
the improper use of information provided to the qualified industry
partner pursuant to this section. 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) Notwithstanding Section 10231.5 of the Government Code, by
October 1 of each year, the department shall 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) A report submitted under subdivision (g) shall be submitted
pursuant to Section 9795 of the Government Code.
(i) This section does not impair or limit the authority provided
in Section 12155 of the Insurance Code.
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 all of the
following:
(1) Vehicle registration and titling transactions.
(2) Driver's license renewals.
(3) Eyesight and hearing tests.
(4) Fingerprinting services.
(5) Photography services.
(b) (1) The department may enter into contractual agreements with
qualified private industry partners to provide the services
authorized under subdivision (a). The following three types of
private industry partnerships are authorized under this section:
(A) A first-line business partner is an industry partner that
receives data directly from the department and uses it to complete an
activity authorized in subdivision (a), for that partner's own
business purposes.
(B) A first-line service provider is an industry partner that
receives information from the department and then transmits it to
another authorized industry partner.
(C) A 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.
(3) The department, by regulation, shall establish any additional
requirements for the purpose of safeguarding privacy and protecting
the information authorized for release under this section.
(c) The director, through the adoption of regulations, may
establish 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 each category of 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
for any category of information and services 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 or revise regulations and
procedures that ensure adequate oversight and monitoring of qualified
private industry partners to protect vehicle owners and other
department customers from the improper use of vehicle records or
other information provided to the qualified industry partner pursuant
to this section. 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) Notwithstanding Section 10231.5 of the Government Code, by
October 1 of each year, the department shall 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) A report submitted under subdivision (g) shall be submitted
pursuant to Section 9795 of the Government Code.
(i) This section does not impair or limit the authority provided
in Section 4610 or Section 12155 of the Insurance Code.
