Effective January 1, 2019, California Assembly Bill AB 516 will take effect. This bill replaces the paper-based Report of Sales (ROS) with an electronic one and requires that Temporary License Plates (TLP) or Temp-Tags be printed at the point of sale when a sold vehicle either has no license plates or has out-of-state license plates. To effectively carry out this mandate, the DMV has introduced the “Temp-Tag Program”. This program will create the electronic Report of Sale (eROS), print the temporary registration, and print the “Temp-Tags” where applicable.
The following information is a guide through this new mandate. We will also introduce SambaSafety, a First Line Service Provider participating in the CA BPA program that we have partnered with, as well as provide a contact link that you can fill out to learn more.
SambaSafety is a First Line Service Provider in the BPA Program. We support the entire Second Line Business Partner program, including vehicle transfers. Our program integrates with many dealer management systems to make the entire auto sales process seamless.
If you are a dealer that uses a registration service, your registration service can provide an integrated eROS and transfer solution.
As a Registration service in the BPA program, using the SambaSafety/ADR system we will be able to provide our dealers with a Temp-Tag account. The account will be unique to the dealer and connected to your SLBP system. You, as the dealer, will create the Electronic Report of Sale thru the system, print the temp tag, if necessary, the sale information will upload to the DMV system and to your SLBP’s system which will allow them to complete the transaction when you send in your registration documents.
The dealer account will be a standard SambaSafety/ADR account, with specific functionality: Temp-Tags, Vehicle Reports* and NMVTIS.
Your registration service partner can provide you with fully compliant Temp-Tag program. You complete the Electronic Report of Sales eROS thru the intuitive and straightforward SambaSafety/ADR interface.
You decide who can access the system and create the eROS. Print the registration portion of the ROS (for the windshield) and print the Temp-Tag, if necessary.
All the details are transmitted to the DMV temporary registration data base. As a bonus, the data is also sent to your registration service, to complete the transfer.
Order inventory (special temp-tag paper) thru the application.
Select an established solution.
Support your partner registration service.
1 – What is the California Assembly Bill AB 516?
California Assembly Bill AB 516 is legislation that requires an electronic Report of Sale (eROS), a printed temporary registration, and the ability to create Temporary License Plates (Temp-Tags) for vehicles at the point of sale. Temp-Tags are only necessary if the vehicle at the point of sale either has no license plates or has out-of-state license plates.
2 – Why was the California Assembly Bill AB 516 passed?
Each year, thousands of vehicles operate on California roadway’s and highway system with no license plates, which creates a public safety issue for law enforcement, and allows vehicles without plates to avoid tolls.
3 – Who needs to follow California Assembly Bill AB 516?
Independent and franchise dealers, wholesale dealers, and auto auctions.
4 – What is the BPA program?
The DMV established the Business Partner Automation (BPA) program in 2003. The BPA program allows qualified businesses to process vehicle related transactions on behalf of the DMV.
5 – What is a First Line Service Provider?
A First Line Service Provider is a business that is a part of the BPA program and qualified to work directly with the DMV to process vehicle related transactions.
6 – How does the “Temp-Tag Program” work?
The following will help you understand how the “Temp-Tag Program” works:
a. The dealer will access the “Temp-Tag Program” using a sub-account through their Registration Service (considered a Second Line Business Provider) or directly, as a participating BPA Second Line Business Provider themselves.
b. The “Temp-Tag Program” is where:
i. Vehicle purchase details are entered
ii. The electronic Report of Sales (eROS) is created
iii. The temporary registration is printed
iiii. Temp-Tags are printed (if necessary)
c. The temporary registration form will need to be affixed to the windshield of the sold vehicle.
d. Temp-Tags are printed at the point of sale only when a sold vehicle either has no license plates or has out-of-state license plates.
e. There are two Temp-Tag sizes available – one for vehicles, such as automobiles, trucks and trailers, and another for motorcycles. Printed Temp-Tags are placed at both the front and rear of the vehicle (where applicable).
f. Signed documentation will be delivered/handed off to the First Line Service Provider or the Second Line Business Provider.
7 – What is a Second Line Business Provider?
Second Line Business Providers work with First Line Service Providers in order to complete the vehicle purchase transfer process.
*Click here to learn more about how to become a Second Line Business Provider.
8 – When did these changes take effect?
January 1, 2019
9 – Can I just continue using my pre-existing Registration Service?
Yes, however the benefit of your dealership being a Second Line Business Provider means you can complete all the tasks on-site, rather than only being able to create the Temp-Tags and print the temporary registration form on-site.
10 – How does California Assembly Bill AB 516 affect me?
California Assembly Bill AB 516 is mandatory and needs to be adhered to by independent and franchise dealers, wholesale dealers, and auto auctions.
Furthermore:
a. Effective January 1, 2019 dealers will have to participate in the “Temp-Tag Program”.
b. A dealer is only considered a CA DMV BPA participant if they themselves are a Second Line Business Provider or use a Registration Service.
c. If the dealer is not already a CA DMV BPA program participant, they can use the “Temp-Tag Program” as set up by the CA DMV (in this case, signed documentation will be sent directly to the DMV by the dealer).
d. Temp-Tags need to be printed using a laser printer on special, non-destructive paper (substrate) that the dealer will purchase from their “Temp-Tag Program” partner. For example, if the dealer uses a Registration Service, they will purchase the paper from the Registration Service.
e. The temporary registration form still needs to be printed and affixed to the windshield of the sold vehicle.
11 – Will there be an additional cost by meeting California Assembly Bill AB 516 requirements?
Yes, the document processing charge has been increased by $5 in order to help offset additional costs that will be incurred by the dealer. The following five regulations mirror those provided by the state of California (California Vehicle Code §§4456.4 and 4456.5) electronic filing and documentation preparation fees (slightly modified to reflect California Assembly Bill AB 516 requirements):
a. Dealers participating in the BPA program may charge customers an $85 (up from $80) documentation fee per transaction.
b. Non-participating dealers (dealers who are not a Second Line Business Provider themselves or using a Registration Service) may only charge a $70 (up from $65) documentation fee per transaction.
c. A dealer may charge the purchaser or lessor an electronic filing fee, which does not exceed the actual amount the dealer is charged by a First Line Service Provider. California regulations prohibit customers from being charged more than $29.
d. A dealer may not charge an electronic filing fee to the purchaser or lessor if the dealer uses a Registration Service to complete the electronic filing process.
e. A dealer may not collect, or must immediately refund, an electronic filing fee to the purchaser or lessor if the dealer is unable to complete the transaction electronically for any reason.
12 – When do I need to use Temporary License Plates (Temp-Tags)?
Temp-Tags are necessary when the sold vehicle either has no license plates or has out-of-state license plates.
13 – Where will Temporary License Plates (Temp-Tags) be displayed?
There are two Temp-Tag sizes available – one for vehicles, such as automobiles, trucks and trailers, and another for motorcycles. Temp-Tags are required by law to be placed on both the front and the rear of the vehicle (where applicable).
14 – What are Temp-Tag printing requirements?
Dealers need a laser printer and special, non-destructive paper (substrate) in order to produce the Temporary License Plates (Temp-Tags).
15 – Where do I purchase the special, non-destructive paper?
The dealer will purchase the special, non-destructive paper (substrate) from their “Temp-Tag Program” partner. For example, if the dealer uses a Registration Service, they will purchase the paper from the Registration Service.
16 – Will I still need to mail the 5-day notice to the DMV?
No, the electronic Report of Sales (eROS) takes care of this.
17 – Who is SambaSafety?
SambaSafety is a BPA First Line Service Provider that AutoManager has partnered with in order to help our dealers satisfy the California Assembly Bill AB 516 requirements. Second Line Business Providers need a First Line Service Provider in order to complete the purchase transaction process. SambaSafety is one of only four First Line Service Providers allowed by the CA DMV to participate in the “Temp-Tag Program”. For more information click here, and fill out the form on the right side of the page.