Existing law authorizes the Department of Motor Vehicles, in order to continue improving the quality of products and services it provides to its customers, 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 authorize the department, in order to provide electronic vehicle registration services, to enter into an interstate carrier partnership with an interstate carrier partner, if the partner meets specified requirements, and would authorize the department to enter into contractual agreements with 3 specified types of partnerships. The bill would authorize the department to adopt regulations to carry out the purposes of these provisions, including, but not limited to, establishing fees and safeguards for privacy and protecting information authorized for release, and to establish the maximum amount that an interstate carrier partner may charge its customers in providing the services authorized under these provisions.

Existing law authorizes the Department of Motor Vehicles, in order to continue improving the quality of products and services it provides to its customers, 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 authorize the department, in order to provide electronic vehicle registration services, to enter into an interstate carrier partnership with an interstate carrier partner, if the partner meets specified requirements, and would authorize the department to enter into contractual agreements with 3 specified types of partnerships. The bill would authorize the department to adopt regulations to carry out the purposes of these provisions, including, but not limited to, establishing fees and safeguards for privacy and protecting information authorized for release, and to establish the maximum amount that an interstate carrier partner may charge its customers in providing the services authorized under these provisions.

Existing law authorizes the Department of Motor Vehicles, in order to continue improving the quality of products and services it provides to its customers, 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 authorize the department to enter into an interstate carrier partnership with an interstate carrier partner, if the partner meets specified requirements, and would authorize the department to enter into contractual agreements with 3 specified types of partnerships. The bill would authorize the department to adopt regulations to carry out the purposes of these provisions, including, but not limited to, establishing fees and safeguards for privacy and protecting information authorized for release, and to establish the maximum amount that an interstate carrier partner may charge its customers in providing the services authorized under these provisions.

 THIRD READING  

Bill No: AB 2107

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 10-0, 6/28/16

AYES: Beall, Cannella, Allen, Bates, Gaines, Leyva, McGuire, Mendoza, Roth, Wieckowski

NO VOTE RECORDED: Galgiani

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

ASSEMBLY FLOOR: 78-0, 5/31/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill makes permanent a Department of Motor Vehicles (DMV) pilot program for interstate carrier registration.

ANALYSIS:

Existing law:

1. Authorizes DMV to enter into contractual agreements with interstate carrier partners to allow them to provide electronic vehicle registration services and titling transactions.
2. Authorizes DMV to establish, through regulations, the maximum amount that a partner may charge its customers for these services.
3. Requires DMV to adopt regulations and procedures to carry out the program.

This bill:

1. Authorizes DMV to enter into an interstate carrier partnership if the partner meets the following requirements:
   1. Agrees to provide electronic vehicle registration services using a DMV registration system or a system approved by DMV
   2. Maintains, protects, and issues vehicle registration documents and indicia as applicable on behalf of DMV to its customers
   3. Demonstrates International Registration Plan knowledge proficiency, as determined by DMV and established in DMV regulations
   4. Meets qualification standards established by DMV
2. Authorizes DMV to enter into contractual agreements with interstate carrier partners that utilize the DMV registration system or a system approved by DMV. Authorizes three types of partnerships: a registration service, a vehicle leasing company or vehicle rental company, and a motor carrier association.
3. Authorizes DMV to adopt regulations to carry out this bill, including but not limited to program structure, fees, financial responsibility, compliance requirements, adequate oversight and monitoring, safeguards for privacy and protecting information authorized for release in this bill, minimum transaction requirements, and performance standards to ensure accuracy and efficiency.
4. Authorizes DMV to establish, through regulations, the maximum amount that an interstate carrier may charge its customers in providing electronic registration services.

Comments

1. Purpose. The author states that similar to the Business Partner Automation Program (BPA) (see Comment #2), this bill will enable DMV to make permanent its pilot Interstate Carrier Program and authorize it to enter into contracts with interstate carrier partners to provide electronic vehicle registration services. This bill would authorize these partners — leasing companies, registration agents, and motor carrier associations — to issue International Registration Program (IRP) credentials to their customers once DMV has adopted regulations. The author states that the success of BPA demonstrates the value of public-private partnerships in accomplishing regulatory compliance while meeting the needs of economically significant industries. This bill will help expedite the issuance of IRP credentials, lower costs to both the state and to the trucking industry, and improve goods movement.
2. BPA. BPA allows qualified industry partners to process certain vehicle-related transactions, such as registration cards, registration stickers, and certain license plates, from their remote locations. Existing law limits the Program to specific types of transactions and specific types of partner entities. This program helps partners provide “one-stop” service to their customers and reduces trips to DMV. Partners include companies such as dealers, smog check stations, auto dismantlers, rental car companies, and leasing companies.
3. IRP. IRP is a federally supported program to facilitate registration and operation of trucks among states and Canadian provinces. IRP member jurisdictions collect registration fees from their “home-based” interstate trucking companies on behalf of each member jurisdiction in which the companies operate and must register. These fees are then apportioned to each member jurisdiction based on the percentage of the carrier’s operations conducted in that jurisdiction.
4. Codifying a DMV pilot program. IRP transactions were becoming increasingly complex due to federal requirements, resulting in lengthy transaction times in field offices. In 2010, DMV centralized IRP processing in headquarters in an effort to improve consistency and service levels. However, the trucking industry often needs immediate service in locations far from Sacramento, so DMV created a pilot program, the Interstate Carrier Program, overseen by headquarters. This program allows approved providers to access DMV’s IRP software to process interstate registration credentials. This in turn enables industry participants (e.g., interstate trucking companies) to obtain local service in a timely manner without negatively impacting DMV field offices. This bill will give DMV the legal authority to develop a BPA-like framework for formalizing and regulating the partnerships established under the pilot program. The success of BPA has demonstrated the value of public-private partnerships in accomplishing regulatory compliance with California’s motor vehicle-related standards.

Related/Prior Legislation

AB 1215 (Blumenfield, Chapter 329, Statutes of 2011) requires new car dealers to participate in a program to electronically title and register vehicles that they sell and to post specified warning notices on some used cars.

SB 46 (Polanco, Chapter 127, Statutes of 2001) established the BPA, allowing qualified private industry partners to process specific vehicle-related transactions and electronically transmit the transaction information to DMV’s vehicle registration database.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• One-time DMV costs of approximately $390,000 to develop and adopt regulations, execute contracts with partners, develop security protocols, and make necessary systems changes. (Motor Vehicle Account)
  
• Ongoing DMV costs of approximately $250,000 to process applications. These costs would be fully offset by fees established by regulations. (Motor Vehicle Account)
  
• Unknown ongoing DMV savings by reducing field office workload associated with manual in-person transactions. (Motor Vehicle Account)

SUPPORT: (Verified 8/11/16)

California Trucking Association

OPPOSITION: (Verified 8/11/16)

None received

ASSEMBLY FLOOR: 78-0, 5/31/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Gordon, Harper

Prepared by:

8/15/16 20:27:04

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 2107 (Frazier) - Department of Motor Vehicles: electronic vehicle registration services: interstate carrier partnership

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 2107 would authorize the Department of Motor Vehicles (DMV) to enter into an interstate carrier partnership to provide electronic vehicle registration services for commercial trucks under the federal International Registration Plan (IRP).

Fiscal Impact:

• One-time DMV costs of approximately $390,000 to develop and adopt regulations, execute contracts with partners, develop security protocols, and make necessary systems changes. (Motor Vehicle Account)
  
• Ongoing DMV costs of approximately $250,000 to process applications. These costs would be fully offset by fees established by regulations. (Motor Vehicle Account)
  
• Unknown ongoing DMV savings by reducing field office workload associated with manual in-person transactions. (Motor Vehicle Account)

Background:

Existing law establishes the Business Partner Automation (BPA) program, which authorizes DMV to enter into contracts that allow private industry partners to process specific vehicle-related transactions, such as vehicle registration and titling, either directly or through a service provider. Existing law requires licensed new motor vehicle dealers to participate in the BPA program and electronically process all DMV transactions related to vehicle sales and leases. The BPA program is generally not available for commercial vehicle transactions, except on a pilot basis as noted below.

The IRP is a federally-supported program that facilitates interstate trucking operations across the United States and the Canadian provinces. Member jurisdictions collect vehicle registration fees from their home-based interstate trucking companies on behalf of each member jurisdiction in which the companies operate. Fees collected under the IRP are then apportioned to each member jurisdiction, based on the proportion of the carrier’s operations in that jurisdiction. In order to participate in this program, motor carriers must register and obtain IRP credentials from their home jurisdiction.

In 2011, DMV initiated a pilot program resembling the BPA program to allow certain registration services to perform a limited set of transactions related to the IRP on an electronic platform. Under the pilot, authorized vendors can issue IRP credentials and documents to motor carriers and record transactions on DMV systems that are then reviewed by the department for accuracy and completeness. This pilot program has allowed the trucking industry to obtain local service in a timely manner without negatively impacting processing times in DMV field offices. In the span of five years, over 75,000 IRP transactions will have been processed by 59 program participants.

Proposed Law:

AB 2107 would authorize DMV to enter into an interstate carrier partnership to provide electronic vehicle registration services through an interstate carrier partner that does all of the following:

• Agrees to provide electronic vehicle registration services with specified capabilities through a DMV registration system or a system approved by DMV.
• Maintains, protects, and issues apportioned vehicle registration documents and applicable indicia on behalf of DMV to its customers.
• Demonstrates IRP knowledge proficiency, as determined by DMV and established through regulations
• Meets qualification standards established by DMV through regulations.

The bill authorizes DMV to enter into contractual agreements with the following interstate carrier partners that utilize the DMV apportioned registration system or a system approved by DMV: (1) a registration service; (2) a vehicle leasing or rental company; or (3) a motor carrier association. The partner must submit an application to DMV on the form specified in regulations and include any other required information.

AB 2107 would also require DMV to adopt regulations for purposes of establishing the program that include the following: program administration structure, fees, financial responsibility, compliance requirements, adequate oversight and monitoring, safeguards for privacy and protecting information authorized for release, minimum transaction requirements, and performance standards to ensure accuracy and efficiency. DMV regulations may also specify the maximum amount that an interstate carrier may charge its customers in providing electronic registration services.

Related Legislation:

AB 1215 (Blumenfield), Chap. 329/2011, requires new car dealers to participate in a program to electronically title and register vehicles that they sell and to post specified warning notices on some used cars.

SB 46 (Polanco), Chap. 127/2001), established the BPA program, allowing qualified private industry partners to process specific vehicle-related transactions and electronically transmit the transaction information to DMV’s vehicle registration database.

Staff Comments:

This bill builds on the initial success of the pilot program and establishes a permanent program providing for the electronic registration of commercial vehicles through partnerships with participants in the federal IRP. DMV will incur initial costs to formally establish the program, but ongoing costs will be fully offset by fees, and the program is likely to result in ongoing DMV savings by moving transactions out of field offices.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: AB 2107 Hearing Date: 6/28/2016

SUBJECT: Department of Motor Vehicles: electronic vehicle registration services: interstate carrier partnership

DIGEST: This bill makes permanent a Department of Motor Vehicles (DMV) pilot program for interstate carrier registration.

ANALYSIS:

Existing law:

1. Authorizes DMV to enter into contractual agreements with interstate carrier partners to allow them to provide electronic vehicle registration services and titling transactions.
2. Authorizes DMV to establish, through regulations, the maximum amount that a partner may charge its customers for these services.
3. Requires DMV to adopt regulations and procedures to carry out the program.

This bill:

1. Authorizes DMV to enter into an interstate carrier partnership if the partner meets the following requirements:
   1. Agrees to provide electronic vehicle registration services using a DMV registration system or a system approved by DMV
   2. Maintains, protects, and issues vehicle registration documents and indicia as applicable on behalf of DMV to its customers
   3. Demonstrates International Registration Plan knowledge proficiency, as determined by DMV and established in DMV regulations
   4. Meets qualification standards established by DMV
2. Authorizes DMV to enter into contractual agreements with interstate carrier partners that utilize the DMV registration system or a system approved by DMV. Authorizes three types of partnerships: a registration service, a vehicle leasing company or vehicle rental company, and a motor carrier association.
3. Authorizes DMV to adopt regulations to carry out this bill, including but not limited to program structure, fees, financial responsibility, compliance requirements, adequate oversight and monitoring, safeguards for privacy and protecting information authorized for release in this bill, minimum transaction requirements, and performance standards to ensure accuracy and efficiency.
4. Authorizes DMV to establish, through regulations, the maximum amount that an interstate carrier may charge its customers in providing electronic registration services.

COMMENTS:

1. Purpose. The author states that similar to the Business Partner Automation Program (BPA) (see Comment #2), this bill will enable DMV to make permanent its pilot Interstate Carrier Program and authorize it to enter into contracts with interstate carrier partners to provide electronic vehicle registration services. This bill would authorize these partners — leasing companies, registration agents, and motor carrier associations — to issue International Registration Program (IRP) credentials to their customers once DMV has adopted regulations. The author states that the success of BPA demonstrates the value of public-private partnerships in accomplishing regulatory compliance while meeting the needs of economically significant industries. This bill will help expedite the issuance of IRP credentials, lower costs to both the state and to the trucking industry, and improve goods movement.
2. Background: BPA. BPA allows qualified industry partners to process certain vehicle-related transactions, such as registration cards, registration stickers, and certain license plates, from their remote locations. Existing law limits the program to specific types of transactions and specific types of partner entities. This program helps partners provide “one-stop” service to their customers and reduces trips to DMV. Partners include companies such as dealers, smog check stations, auto dismantlers, rental car companies, and leasing companies.
3. Background: IRP. IRP is a federally supported program to facilitate registration and operation of trucks among states and Canadian provinces. IRP member jurisdictions collect registration fees from their “home-based” interstate trucking companies on behalf of each member jurisdiction in which the companies operate and must register. These fees are then apportioned to each member jurisdiction based on the percentage of the carrier’s operations conducted in that jurisdiction.
4. Codifying a DMV pilot program. IRP transactions were becoming increasingly complex due to federal requirements, resulting in lengthy transaction times in field offices. In 2010, DMV centralized IRP processing in headquarters in an effort to improve consistency and service levels. However, the trucking industry often needs immediate service in locations far from Sacramento, so DMV created a pilot program, the Interstate Carrier Program, overseen by headquarters. This program allows approved providers to access DMV’s IRP software to process interstate registration credentials. This in turn enables industry participants (e.g., interstate trucking companies) to obtain local service in a timely manner without negatively impacting DMV field offices. This bill will give DMV the legal authority to develop a BPA-like framework for formalizing and regulating the partnerships established under the pilot program. The success of BPA has demonstrated the value of public-private partnerships in accomplishing regulatory compliance with California’s motor vehicle-related standards.

Assembly Votes:

Floor: 78-0

Appr: 20-0

Trans: 16-0

RELATED LEGISLATION

AB 1215 (Blumenfield, Chapter 329, Statutes of 2011) — requires new car dealers to participate in a program to electronically title and register vehicles that they sell and to post specified warning notices on some used cars.

SB 46 (Polanco, Chapter 127, Statutes of 2001) — established the BPA program, allowing qualified private industry partners to process specific vehicle-related transactions and electronically transmit the transaction information to DMV’s vehicle registration database.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 22, 2016.)

SUPPORT:

California Trucking Association

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2107

Author:(Frazier)

As Introduced Ver:February 17, 2016

Majority vote

SUMMARY: Authorizes the Department of Motor Vehicles (DMV) to enter into agreements with qualified private industry partners to carry out certain electronic registration transactions related to the International Registration Plan (IRP). Specifically, this bill:

1. Authorizes DMV to enter into contracts with three types of interstate carrier partners subject to certain requirements for the purpose of providing electronic vehicle registration service using an apportioned registration system.
2. Authorizes DMV to adopt regulations to carry out the purposes of this program and to establish through regulation the maximum amount that an interstate carrier partner may charge its customers in providing the services under this program.

EXISTING LAW:

1. Authorizes DMV to enter in to the IRP and adopt rules and regulations necessary to carry out the provisions of the IRP.
2. Authorizes DMV to establish contracts for electronic programs that allow qualified private industry partners to provide services that include processing and payment programs for vehicle registration and titling transactions.
3. Requires a new motor vehicle dealer to use electronic programs provided by a specific type of private industry partner to register a vehicle the dealer sells or leases if DMV permits the transaction to be processed electronically, except for off-highway or recreational vehicles.

FISCAL EFFECT: According to the Assembly Appropriations Committee, DMV will incur additional costs of around $400,000 in the first year and $250,000 ongoing to develop regulations, execute contracts, develop security protocols, revise forms and manuals, and process applications. Though some of these costs will be borne by the department initially, all costs should be recovered through fees to be established by the department through regulations.

COMMENTS: Existing law, [SB 46 (Polanco), Chapter 127, Statutes of 2001], establishes DMV's Business Partner Automation (BPA) program and authorizes the department to enter into contracts that allow private industry partners to process specific vehicle-related transactions, such as vehicle registration and titling. Under this program, a business partner communicates with DMV either directly or through a service provider to complete the transaction. In 2011, AB 1215 (Blumenfield), Chapter 329, Statutes of 2011, required licensed new motor vehicle dealers to participate in the BPA program and electronically process all vehicle sales and leases. Since that time, the BPA program has grown to become the primary processing method for these transactions, and more than $1.2 billion in annual vehicle-related state revenue is received by the state through the BPA program.

The IRP is a federally-supported program that facilitates interstate trucking operations across the United States and the Canadian provinces. Member jurisdictions of the IRP collect vehicle registration fees from their home-based interstate trucking companies on behalf of each member jurisdiction in which the companies operate. Fees collected under the IRP are then apportioned to each member jurisdiction, based on the proportion of the carrier's operations in that jurisdiction. In order to participate in this apportioned registration program, motor carriers must register and obtain IRP credentials from their home jurisdiction.

In 2011, DMV initiated a pilot program resembling the BPA program to allow certain registration services to perform a limited set of transactions related to the IRP on an electronic platform. Under the pilot, authorized vendors can issue IRP credentials and documents to motor carriers and record transactions on DMV systems that are then reviewed by the department for accuracy and completeness. The alternative, non-electronic method to complete these transactions requires motor carriers to submit physical documents to DMV headquarters for approval, which can be a lengthy, time-consuming process. This pilot program has allowed the trucking industry to obtain local service in a timely manner without negatively impacting processing times in DMV field offices. In the span of five years, over 75,000 IRP transactions will have been processed by 59 program participants.

This bill would make DMV's pilot program permanent and authorize DMV to adopt regulations to carry out the program. Specifically, this bill establishes basic qualifications for industry partners and identifies three types of entities DMV may partner with: a registration service, who handles vehicle registration as part of a bookkeeping operation for owner-operators and small firms; a vehicle leasing company or vehicle rental company, who provide trucks and equipment; and a motor carrier association, which could assist their memberships with IRP credentialing. DMV would also be authorized to adopt regulations relating to program administration structure, fees, financial responsibility, compliance requirements, adequate oversight and monitoring, safeguards for privacy, minimum transaction requirements, performance standards to ensure accuracy and efficiency, and to set the maximum amount that an industry partner could charge for these services.

According to the author, this bill will ensure that the trucking industry has immediate and convenient access to IRP credentialing, expediting the entry of commercial motor vehicles into interstate trucking activities. The success of the BPA program demonstrates the value of public-private partnerships in accomplishing regulatory compliance with California's motor vehicle-related standards. The author argues that this bill would improve the movement of goods in California, home to three of the nation's busiest ports and a primary arrival and destination point for international trade, by quickly authorizing vehicles to operate in interstate commerce through an efficient and cost-effective technological solution.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093 FN: 0003131

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2107

Author:(Frazier) – As Introduced Ver:February 17, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the DMV to enter into agreements with qualified private industry partners to carry out certain electronic registration transactions related to the International Registration Plan (IRP)—a federally-supported program that facilitates interstate trucking operations across the United States and the Canadian provinces.

FISCAL EFFECT:

DMV will incur additional costs of around $400,000 in the first year and $250,000 ongoing to develop regulations, execute contracts, develop security protocols, revise forms and manuals, and process applications. Though some of these costs will be borne by the department initially, all costs should be recovered through fees to be established by the department through regulations.

COMMENTS:

1. Background. Under DMV’s Business Partner Automation (BPA) program, the department has entered into contracts that allow private industry partners to process specific vehicle-related transactions, such as vehicle registration and titling. These business partners communicate with DMV either directly or through a service provider to complete a transaction.

Under the IRP program, member jurisdictions collect vehicle registration fees from their home-based interstate trucking companies on behalf of each member jurisdiction in which the companies operate. Fees collected under the IRP are then apportioned to each member jurisdiction, based on the proportion of the carrier’s operations in that jurisdiction. In order to participate in this apportioned registration program, motor carriers must register and obtain IRP credentials from their home jurisdiction.

In 2011, DMV initiated a pilot program resembling the BPA program to allow certain registration services to perform a limited set of transactions related to the IRP on an electronic platform. This pilot program has allowed the trucking industry to obtain local service in a timely manner without negatively impacting processing times in DMV field offices. In five years, over 75,000 IRP transactions will have been processed by 59 program participants.

1. Purpose. AB 2107 makes the DMV’s IRP pilot program permanent and authorizes the department to adopt regulations to carry out the program. According to the author, this bill will ensure that the trucking industry has immediate and convenient access to IRP credentialing, expediting the entry of commercial motor vehicles into interstate trucking activities.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 4, 2016

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 2107 (

Author:Frazier) – As Introduced Ver:February 17, 2016

SUBJECT: Department of Motor Vehicles: electronic vehicle registration services: interstate carrier partnership

SUMMARY: Authorizes the Department of Motor Vehicles (DMV) to enter into agreements with qualified private industry partners to carry out certain electronic registration transactions related to the International Registration Plan (IRP). Specifically, this bill:

1. Authorizes DMV to enter into contracts with three types of interstate carrier partners subject to certain requirements for the purpose of providing electronic vehicle registration service using an apportioned registration system.
2. Authorizes DMV to adopt regulations to carry out the purposes of this program.
3. Authorizes DMV to establish through regulation the maximum amount that an interstate carrier partner may charge its customers in providing the services under this program.

EXISTING LAW:

1. Authorizes DMV to enter in to the IRP and adopt rules and regulations necessary to carry out the provisions of the IRP.
2. Authorizes DMV to establish contracts for electronic programs that allow qualified private industry partners to provide services that include processing and payment programs for vehicle registration and titling transactions.
3. Requires a new motor vehicle dealer to use electronic programs provided by a specific type of private industry partner to register a vehicle the dealer sells or leases if DMV permits the transaction to be processed electronically, except for off-highway or recreational vehicles.

FISCAL EFFECT: Unknown

COMMENTS: Existing law, [SB 46 (Polanco), Chapter 127, Statutes of 2001], establishes DMV’s Business Partner Automation (BPA) program and authorizes the department to enter into contracts that allow private industry partners to process specific vehicle-related transactions, such as vehicle registration and titling. Under this program, a business partner communicates with DMV either directly or through a service provider to complete the transaction. In 2011,
AB 1215 (Blumenfield), Chapter 329, Statutes of 2011, required licensed new motor vehicle dealers to participate in the BPA program and electronically process all vehicle sales and leases. Since that time, the BPA program has grown to become the primary processing method for these transactions, and more than $1.2 billion in annual vehicle-related state revenue is received by the state through the BPA program.

The IRP is a federally-supported program that facilitates interstate trucking operations across the United States and the Canadian provinces. Member jurisdictions of the IRP collect vehicle registration fees from their home-based interstate trucking companies on behalf of each member jurisdiction in which the companies operate. Fees collected under the IRP are then apportioned to each member jurisdiction, based on the proportion of the carrier’s operations in that jurisdiction. In order to participate in this apportioned registration program, motor carriers must register and obtain IRP credentials from their home jurisdiction.

In 2011, DMV initiated a pilot program resembling the BPA program to allow certain registration services to perform a limited set of transactions related to the IRP on an electronic platform. Under the pilot, authorized vendors can issue IRP credentials and documents to motor carriers and record transactions on DMV systems that are then reviewed by the department for accuracy and completeness. The alternative, non-electronic method to complete these transactions requires motor carriers to submit physical documents to DMV headquarters for approval, which can be a lengthy, time-consuming process. This pilot program has allowed the trucking industry to obtain local service in a timely manner without negatively impacting processing times in DMV field offices. In the span of five years, over 75,000 IRP transactions will have been processed by 59 program participants.

AB 2107 would make DMV’s pilot program permanent and authorize DMV to adopt regulations to carry out the program. Specifically, this bill establishes basic qualifications for industry partners and identifies three types of entities DMV may partner with: a registration service, who handles vehicle registration as part of a bookkeeping operation for owner-operators and small firms; a vehicle leasing company or vehicle rental company, who provide trucks and equipment; and a motor carrier association, which could assist their memberships with IRP credentialing. DMV would also be authorized to adopt regulations relating to program administration structure, fees, financial responsibility, compliance requirements, adequate oversight and monitoring, safeguards for privacy, minimum transaction requirements, performance standards to ensure accuracy and efficiency, and to set the maximum amount that an industry partner could charge for these services.

According to the author, this bill will ensure that the trucking industry has immediate and convenient access to IRP credentialing, expediting the entry of commercial motor vehicles into interstate trucking activities. The success of the BPA program demonstrates the value of public-private partnerships in accomplishing regulatory compliance with California’s motor vehicle-related standards. The author argues that this bill would improve the movement of goods in California, home to three of the nation’s busiest ports and a primary arrival and destination point for international trade, by quickly authorizing vehicles to operate in interstate commerce through an efficient and cost-effective technological solution.

Previous legislation: AB 1215 (Blumenfield), Chapter 329, Statutes of 2011, required new car dealers to participate in a program to electronically title and register vehicles that they sell and to post specified warning notices on some used cars.

SB 46 (Polanco), Chapter 127, Statutes of 2001, established the BPA program, allowing qualified private industry partners to process specific vehicle-related transactions and electronically transmit the transaction information to the department’s vehicle registration database.

REGISTERED SUPPORT / OPPOSITION:

Support

California Trucking Association

Opposition

None on file

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093