California Assembly Bill AB516 Amended / Bill

 BILL NUMBER: AB 516AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 20, 2015 INTRODUCED BY Assembly Member Mullin  (   Coauthor:   Assembly Member   Chiu   )   (  Coauthor:   Senator   Hill   )  FEBRUARY 23, 2015 An act to  amend Sections 1685, 4456, 4463, and 5200 of, to amend, repeal, and add Section 4456.5 of, and to  add Sections  1686 and   1686,  4456.6  to   , and 5202.5 to,  the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 516, as amended, Mullin. Vehicles: temporary license plates. Existing law requires the Department of Motor Vehicles (DMV), upon registering a vehicle, to issue to the owner 2 license plates, as specified. Existing law also requires vehicle dealers and lessor-retailers to attach numbered report-of-sale forms issued by the DMV to a vehicle at the time of sale, and to submit to the DMV an application for registration of the vehicle, and the applicable fees, within a specified period after the date of sale.  A violation of the Vehicle Code is a crime.   Existing law generally makes a violation of the Vehicle Code an infraction, bu   t makes counterfeiting a license plate a felony   .  This bill would require the DMV to develop a temporary license plate system to enable  the DMV,  vehicle dealers  and lessor-retailers   that are private industry partners, and first-line service providers, as defined,  to provide temporary license plates, and would require the system to begin operation on  or before  January 1, 2017. The bill would  also  require, commencing January 1, 2017, a motor vehicle dealer  or lessorretailer   that is a private-industry partner  to affix a temporary license plate, at the time of sale, to a vehicle sold without a permanent license plate.  Because a violation of this provision would be a crime,   The bill would authorize the operation of a vehicle that has been issued temporary license plates for 90 days after the sale of the vehicle or until the owner receives the permanent license plates, and would direct the owner to destroy the temporary license plates upon the receipt of the permanent license plates, as specified. A violation of these provisions would be a crime. The bill would a   lso make counterfeiting a temporary license plate a felony. By creating new crimes and expanding the scope of an existing crime,  this bill would impose a state-mandated local program.  Existing law authorizes a vehicle dealer to charge the purchaser of a vehicle a document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations. Under existing law, if a dealer has a contractual agreement with the DMV to be a private industry partner, the document processing charge may not exceed $80. Existing law also authorizes the dealer to impose an electronic filing charge that does not exceed the amount the dealer is charged by a first-line service provider for processing license plates, as specified.   This bill would increase to $95 the document processing charge that may be imposed on a vehicle purchaser by a private industry partner. The bill would also require the first-line service provider to impose a $2 transaction fee for processing temporary license plates, and would expand the electronic filing charge to include that amount.  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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. 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. (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)  (1)    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).  (2) Commencing on January 1, 2017, the first-line service provider shall charge a two-dollar ($2) transaction fee for temporary license plates processed pursuant to subdivision (a) of Section 1686. The private industry partner may pass the transaction fee to the customer.  (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.  SECTION 1.   SEC. 2.  Section 1686 is added to the Vehicle Code, to read: 1686.  (a)    The department shall develop, or contract with a private industry partner for the development of, a temporary license plate system that shall begin operating on  or before  January 1, 2017. The system shall enable the department, vehicle  dealers, and lessor-retailers   dealers that are private industry partners under   Section 1685, and first-line service providers  to provide temporary license plates at the time of sale of a vehicle. The system shall provide  real-time  electronic access to information identifying the vehicle and its owner only to those entities authorized to access the state's vehicle registration system.  (b) For purposes of this section, "first-line service provider" has the same meaning as defined in Section 1685.   SEC. 3.   Section 4456 of the   Vehicle Code   is amended to read:  4456. (a) When selling a vehicle, dealers and lessor-retailers shall use numbered report-of-sale forms issued by the department. The forms shall be used in accordance with the following terms and conditions: (1) The dealer or lessor-retailer shall attach for display a copy of the report of sale on the vehicle before the vehicle is delivered to the purchaser. (2) The dealer or lessor-retailer shall submit to the department an application accompanied by all fees and penalties due for registration or transfer of registration of the vehicle within 30 days from the date of sale, as provided in subdivision (c) of Section 9553, if the vehicle is a used vehicle, and 20 days if the vehicle is a new vehicle. Penalties due for noncompliance with this paragraph shall be paid by the dealer or lessor-retailer. The dealer or lessor-retailer shall not charge the purchaser for the penalties. (3) As part of an application to transfer registration of a used vehicle, the dealer or lessor-retailer shall include all of the following information on the certificate of title, application for a duplicate certificate of title, or form prescribed by the department: (A) Date of sale and report of sale number. (B) Purchaser's name and address. (C) Dealer's name, address, number, and signature or signature of authorized agent. (D) Salesperson number. (4) If the department returns an application and the application was first received by the department within 30 days of the date of sale of the vehicle if the vehicle is a used vehicle, and 20 days if the vehicle is a new vehicle, the dealer or lessor-retailer shall submit a corrected application to the department within 50 days from the date of sale of the vehicle if the vehicle is a used vehicle, and 40 days if the vehicle is a new vehicle, or within 30 days from the date that the application is first returned by the department if the vehicle is a used vehicle, and 20 days if the vehicle is a new vehicle, whichever is later. (5) If the department returns an application and the application was first received by the department more than 30 days from the date of sale of the vehicle if the vehicle is a used vehicle, and 20 days if the vehicle is a new vehicle, the dealer or lessor-retailer shall submit a corrected application to the department within 50 days from the date of sale of the vehicle if the vehicle is a used vehicle, and 40 days if the vehicle is a new vehicle. (6) An application first received by the department more than 50 days from the date of sale of the vehicle if the vehicle is a used vehicle, and 40 days if the vehicle is a new vehicle, is subject to the penalties specified in subdivisions (a) and (b) of Section 4456.1. (7) The dealer or lessor-retailer shall report the sale pursuant to Section 5901. (b) (1) A transfer that takes place through a dealer conducting a wholesale vehicle auction shall be reported to the department by that dealer on a single form approved by the department. The completed form shall contain, at a minimum, all of the following information: (A) The name and address of the seller. (B) The seller's dealer number, if applicable. (C) The date of delivery to the dealer conducting the auction. (D) The actual mileage of the vehicle as indicated by the vehicle' s odometer at the time of delivery to the dealer conducting the auction. (E) The name, address, and occupational license number of the dealer conducting the auction. (F) The name, address, and occupational license number of the buyer. (G) The signature of the dealer conducting the auction. (2) Submission of the completed form specified in paragraph (1) to the department shall fully satisfy the requirements of subdivision (a) and subdivision (a) of Section 5901 with respect to the dealer selling at auction and the dealer conducting the auction. (3) The single form required by this subdivision does not relieve a dealer of any obligation or responsibility that is required by any other  provision of  law.  (c) If temporary license plates have been issued for a vehicle, the vehicle may be operated until either of the following events, whichever occurs first:   (1) The permanent license plates and registration card are received by the purchaser.   (2) A 90-day period, commencing with the date of sale of the vehicle, has expired.   (c) A   (d)     If temporary license plates have not been   issued for a vehicle, the  vehicle displaying a copy of the report of sale may be operated without license plates or registration card until either of the following  events  , whichever occurs first: (1) The license plates and registration card are received by the purchaser. (2) A 90-day period, commencing with the date of sale of the vehicle, has expired.  (d) This section shall become operative on July 1, 2012.   SEC. 4.   Section 4456.5 of the   Vehicle Code   is amended to read:  4456.5. (a) A dealer may charge the purchaser or lessee of a vehicle the following charges: (1) A document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. The dealer document processing charge shall not be represented as a governmental fee. (A) If a dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed eighty dollars ($80). (B) If a dealer does not have a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed sixty-five dollars ($65). (2) An electronic filing charge, not to exceed the actual amount the dealer is charged by a first-line service provider for providing license plate processing, postage, and the fees and services authorized pursuant to subdivisions (a) and (d) of Section 1685. The director may establish, through the adoption of regulations, the maximum amount that a first-line service provider may charge a dealer. The electronic filing charge shall not be represented as a governmental fee. (b) As used in this section, the term "first-line service provider" shall have the same meaning as defined in subdivision (b) of Section 1685.  (c) This section shall become operative on July 1, 2012.   (c) This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.   SEC. 5.   Section 4456.5 is added to the   Vehicle Code   , to read:   4456.5. (a) A dealer may charge the purchaser or lessee of a vehicle the following charges: (1) A document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. The dealer document processing charge shall not be represented as a governmental fee. (A) If a dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed ninety-five dollars ($95). (B) If a dealer does not have a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed sixty-five dollars ($65). (2) (A) An electronic filing charge, not to exceed the actual amount the dealer is charged by a first-line service provider for both of the following: (i) Permanent license plate processing, postage, and the fees and services authorized pursuant to subdivisions (a) and (d) of Section 1685. (ii) Temporary license plate processing authorized pursuant to Section 1686. (B) The director may establish, through the adoption of regulations, the maximum amount that a first-line service provider may charge a dealer. The electronic filing charge shall not be represented as a governmental fee. (b) As used in this section, "first-line service provider" has the same meaning as defined in Section 1685. (c) This section shall become operative January 1, 2017.   SEC. 2.   SEC. 6.  Section 4456.6 is added to the Vehicle Code, to read: 4456.6. (a) A motor vehicle dealer  or lessor-retailer   that is a private industry partner pursuant to Section 1685  shall, at the time of sale, affix a temporary license plate to a vehicle sold without a permanent license plate. (b) This section shall become operative on January 1, 2017.  SEC. 7.   Section 4463 of the   Vehicle Code   is amended to read:  4463. (a) A person who, with intent to prejudice, damage, or defraud, commits any of the following acts is guilty of a felony and upon conviction thereof shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for 16 months or two or three years, or by imprisonment in a county jail for not more than one year: (1)  (A)    Alters, forges, counterfeits, or falsifies a certificate of ownership, registration card, certificate, license, license plate, device issued pursuant to Section 4853, special plate, or permit provided for by this code or a comparable certificate of ownership, registration card, certificate, license, license plate, device comparable to that issued pursuant to Section 4853, special plate, or permit provided for by a foreign jurisdiction, or alters, forges, counterfeits, or falsifies the document, device, or plate with intent to represent it as issued by the department, or alters, forges, counterfeits, or falsifies with fraudulent intent an endorsement of transfer on a certificate of ownership or other document evidencing ownership, or with fraudulent intent displays or causes or permits to be displayed or have in his or her possession a blank, incomplete, canceled, suspended, revoked, altered, forged, counterfeit, or false certificate of ownership, registration card, certificate, license, license plate, device issued pursuant to Section 4853, special plate, or permit.  (B) For purposes of this paragraph, "license plate" includes both temporary and permanent license plates.  (2) Utters, publishes, passes, or attempts to pass, as true and genuine, a false, altered, forged, or counterfeited matter listed in paragraph (1) knowing it to be false, altered, forged, or counterfeited. (b) A person who, with intent to prejudice, damage, or defraud, commits any of the following acts is guilty of a misdemeanor, and upon conviction thereof shall be punished by imprisonment in a county jail for six months, a fine of not less than five hundred dollars ($500) and not more than one thousand dollars ($1,000), or both that fine and imprisonment, which penalty shall not be suspended: (1) Forges, counterfeits, or falsifies a disabled person placard or a comparable placard relating to parking privileges for disabled persons provided for by a foreign jurisdiction, or forges, counterfeits, or falsifies a disabled person placard with intent to represent it as issued by the department. (2) Passes, or attempts to pass, as true and genuine, a false, forged, or counterfeit disabled person placard knowing it to be false, forged, or counterfeited. (3) Acquires, possesses, sells, or offers for sale a genuine or counterfeit disabled person placard. (c) A person who, with fraudulent intent, displays or causes or permits to be displayed a forged, counterfeit, or false disabled person placard, is subject to the issuance of a notice of parking violation imposing a civil penalty of not less than two hundred fifty dollars ($250) and not more than one thousand dollars ($1,000), for which enforcement shall be governed by the procedures set forth in Article 3 (commencing with Section 40200) of Chapter 1 of Division 17 or is guilty of a misdemeanor punishable by imprisonment in a county jail for six months, a fine of not less than two hundred fifty dollars ($250) and not more than one thousand dollars ($1,000), or both that fine and imprisonment, which penalty shall not be suspended. (d) For purposes of subdivision (b) or (c), "disabled person placard" means a placard issued pursuant to Section 22511.55 or 22511.59. (e) A person who, with intent to prejudice, damage, or defraud, commits any of the following acts is guilty of an infraction, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars ($100) and not more than two hundred fifty dollars ($250) for a first offense, not less than two hundred fifty dollars ($250) and not more than five hundred dollars ($500) for a second offense, and not less than five hundred dollars ($500) and not more than one thousand dollars ($1,000) for a third or subsequent offense, which penalty shall not be suspended: (1) Forges, counterfeits, or falsifies a Clean Air Sticker or a comparable clean air sticker relating to high occupancy vehicle lane privileges provided for by a foreign jurisdiction, or forges, counterfeits, or falsifies a Clean Air Sticker with intent to represent it as issued by the department. (2) Passes, or attempts to pass, as true and genuine, a false, forged, or counterfeit Clean Air Sticker knowing it to be false, forged, or counterfeited. (3) Acquires, possesses, sells, or offers for sale a counterfeit Clean Air Sticker. (4) Acquires, possesses, sells, or offers for sale a genuine Clean Air Sticker separate from the vehicle for which the department issued that sticker. (f) As used in this section, "Clean Air Sticker" means a label or decal issued pursuant to Sections 5205.5 and 21655.9.  SEC. 8.   Section 5200 of the   Vehicle Code   is amended to read:  5200. (a) When two license plates are issued by the department for use upon a vehicle, they shall be attached to the vehicle for which they were issued, one in the front and the other in the rear. (b) When only one license plate is issued for use upon a vehicle, it shall be attached to the rear thereof, unless the license plate is issued for use upon a truck tractor, in which case the license plate shall be displayed in accordance with Section 4850.5.  (c) For purposes of this section, "license plate" includes both temporary and permanent license plates.   SEC. 9.   Section 5202.5 is added to the   Vehicle Code   , to read:   5202.5. Upon receipt of permanent license plates, the owner of a vehicle shall replace any temporary license plates with the permanent license plates and shall destroy the temporary license plates in accordance with instructions issued by the department.   SEC. 3.   SEC. 10.  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.