California Assembly Bill AB1714 Introduced / Bill

 BILL NUMBER: AB 1714INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Brough JANUARY 26, 2016 An act to amend Section 1685 of the Vehicle Code, relating to the Department of Motor Vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 1714, as introduced, 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 driver's license renewals, eyesight and hearing tests, and fingerprinting and photography services. The bill would make other technical and conforming changes. 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 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.   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. There are the   partners to provide the services authorized under subdivision (a). The  following three types of private industry partnerships  are  authorized under this section: (A)  First-line   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   an activity authorized in subdivision (a),  for that partner's own business purposes. (B)  First-line   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)  Second-line   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 shall, through regulations,   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 may establish,   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  the   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.   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)  The department shall, annually, by October 1,   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.   (h) Nothing in this section impairs or limits   (i)     This section does not impair or limit  the authority provided in Section 4610 or Section 12155 of the Insurance Code.