Bill Text: CA SB806 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Department of Motor Vehicles: license plate alternatives pilot program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-04 - Chaptered by Secretary of State. Chapter 569, Statutes of 2013. [SB806 Detail]

Download: California-2013-SB806-Introduced.html

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BILL NUMBER: SB 806	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Price

                        FEBRUARY 22, 2013

   An act to amend Sections 1685 and 4850 of the Vehicle Code,
relating to the Department of Motor Vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 806, as introduced, Price. Department of Motor Vehicles.
   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. Existing law, the
Schrade-Belotti Act, requires the department, upon registering a
vehicle, to issue to the owner partially or fully reflectorized
license plates or devices for the vehicle, as specified.
   This bill would make technical, nonsubstantive changes to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  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   the department  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.
   (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 the authority
provided in Section 4610 or Section 12155 of the Insurance Code.
  SEC. 2.  Section 4850 of the Vehicle Code is amended to read:
   4850.  (a) The department, upon registering a vehicle, shall issue
to the owner two partially or fully reflectorized license plates or
devices for a motor vehicle, other than a motorcycle, and one
partially or fully reflectorized license plate or device for all
other vehicles required to be registered under this code. The plates
or devices shall identify the vehicles for which they are issued for
the period of their validity.
   (b) Notwithstanding any other provision of law, no contract shall
be let to any nongovernmental entity for the purchase or securing of
reflectorized material for the plates, unless the department has made
every reasonable effort to secure qualified bids from as many
independent, responsible bidders as possible. No contract shall be
let to any nongovernmental entity for the manufacturing of
reflectorized safety license plates.
   (c) In addition to any other fees specified in this code, a fee of
one dollar ($1) for reflectorization shall be paid only by those
vehicle owners receiving license plates or devices under this
section.
   (d) This section does not require vehicle owners with
nonreflectorized license plates or devices to replace them with
reflectorized plates or devices.
   (e) This section shall be known  , and may be cited,  as
the Schrade-Belotti Act.