BILL NUMBER: AB 785 CHAPTERED 08/30/05 CHAPTER 148 FILED WITH SECRETARY OF STATE AUGUST 30, 2005 APPROVED BY GOVERNOR AUGUST 30, 2005 PASSED THE SENATE AUGUST 15, 2005 PASSED THE ASSEMBLY APRIL 21, 2005 INTRODUCED BY Assembly Member Karnette FEBRUARY 18, 2005 An act to amend Sections 505.2, 11400, 11405, and 11406 of the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 785, Karnette Vehicles: registration services: motor carriers of property permits. (1) Existing law defines a "registration service" as a person engaged in the business of soliciting or receiving any application for the registration, renewal of registration, or transfer of registration or ownership, of any vehicle of a type subject to registration under the Vehicle Code, or of transmitting or presenting any of those documents to the Department of Motor Vehicles, when compensation is solicited or received for the service. Existing law establishes a system for the issuance by the department of motor carrier permits to motor carriers of property. This bill would include in the definition of "registration service" a person engaged in the business of soliciting or receiving an application for a motor carrier permit. The bill would make conforming changes in related provisions of existing law. Because a violation of the licensing provisions governing registration services is a misdemeanor under other provisions of existing law, the bill would establish a state-mandated local program by expanding the scope of existing crimes. (2) 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. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 505.2 of the Vehicle Code is amended to read: 505.2. (a) A "registration service" is a person engaged in the business of soliciting or receiving any application for the registration, renewal of registration, or transfer of registration or ownership, of any vehicle of a type subject to registration under this code, or of soliciting or receiving an application for a motor carrier permit under Division 14.85 (commencing with Section 34600), or of transmitting or presenting any of those documents to the department, when any compensation is solicited or received for the service. "Registration service" includes, but is not limited to, a person who, for compensation, processes registration documents, conducts lien sales, or processes vehicle dismantling documents. (b) "Registration service" does not include any of the following: (1) A person performing registration services on a vehicle acquired by that person for his or her own personal use or for use in the regular course of that person's business. (2) A person who solicits applications for or sells, for compensation, nonresident permits for the operation of vehicles within this state. (3) An employee of one or more dealers or dismantlers, or a combination thereof, who performs registration services for vehicles acquired by, consigned to, or sold by the employing dealers or dismantlers. (4) A motor club, as defined in Section 12142 of the Insurance Code. (5) A common carrier acting in the regular course of its business in transmitting applications. SEC. 2. Section 11400 of the Vehicle Code is amended to read: 11400. No person shall act as a registration service, engage in the business of soliciting or receiving any application for the registration, renewal of registration, or transfer of registration or ownership of any vehicle of a type subject to registration under this code, or of soliciting or receiving an application for a motor carrier permit under Division 14.85 (commencing with Section 34600), or transmit or present any of those documents to the department, if any compensation is solicited or received for the service, without a license or temporary permit issued by the department pursuant to this chapter, or if that license or temporary permit has expired or been canceled, suspended, or revoked, or the terms and conditions of an agreement entered into pursuant to Section 11408 have not been fulfilled. SEC. 3. Section 11405 of the Vehicle Code is amended to read: 11405. The department may refuse to issue a license to, or may suspend, revoke, or cancel the license of, a person to act as a registration service for any of the following reasons: (a) The person has been convicted of a felony or a crime involving moral turpitude which is substantially related to the qualifications, functions, or duties of the licensed activity. (b) The person is, or has been, the holder, or a managerial employee of the holder, of any occupational license issued by the department which has been suspended or revoked. (c) The applicant was previously the holder of an occupational license issued by another state, authorizing the same or similar activities of a license issued under this division; and that license was revoked or suspended for cause and was never reissued, or was suspended for cause, and the terms of suspension have not been fulfilled. (d) The person has used a false or fictitious name, knowingly made any false statement, or knowingly concealed any material fact, in the application for the license. (e) The person has knowingly made, or acted with negligence or incompetence, or knowingly or negligently accepted or failed to inquire about any false, erroneous, or incorrect statement or information submitted to the registration service or the department in the course of the licensed activity. (f) The person has knowingly or negligently permitted fraud, or willfully engaged in fraudulent practices, with reference to clients, vehicle registrants, applicants for motor carrier permits under Division 14.85 (commencing with Section 34600), or members of the public, or the department in the course of the licensed activity. (g) The person has knowingly or negligently committed or was responsible for any violation, cause for license refusal, or cause for discipline under Section 20 or Division 3 (commencing with Section 4000), Division 3.5 (commencing with Section 9840), Division 4 (commencing with Section 10500), or Division 5 (commencing with Section 11100), or Division 14.85 (commencing with Section 34600), or any rules or regulations adopted under those provisions. (h) The person has failed to obtain and maintain an established place of business in California. (i) The person has failed to keep the business records required by Section 11406. (j) The person has violated any term or condition of a restricted license to act as a registration service. (k) The person has committed or was responsible for any other act, occurrence, or event in California or any foreign jurisdiction which would be cause to refuse to issue a license to, or to suspend, revoke, or cancel the license of, a person to act as a registration service. SEC. 4. Section 11406 of the Vehicle Code is amended to read: 11406. (a) Every registration service shall keep accurate business records containing all of the following information: (1) The name, address, and license number of the registration service and the name and address of every employee who performs registration work. (2) The name and address of each client for whom registration work was performed. (3) The identity of every vehicle by year, make, type, license number, and vehicle identification number on which registration work was performed. (4) The amount of registration fees or payments collected for each vehicle on which registration work was performed, including the method of payment to the registration service. (5) The amount of registration fees or payments submitted to the department for each vehicle on which registration work was performed, including the date and method of payment to the department. (6) The amount of any refunds or additional charges on registration fees or payments collected for each vehicle on which registration work was performed, including the date and method of payment of the refund or additional charge by or to the client, the registration service, or the department. (7) The name, signature, or initials of each employee performing work on each transaction and the date the work was done. (8) The cost to each client for the registration work performed on each of the client's vehicles or to obtain a motor carrier permit. (9) For each motor carrier for which motor carrier permit work was performed, the carrier identification number, business type, business address, carrier type, activities, and number of vehicles. (10) For each motor carrier for which motor carrier permit work was performed, the amount of fees or payment collected and the method of payment. (11) For each motor carrier for which motor carrier permit work was performed, the amount of fees or payment submitted to the department, including the date submitted and the method of payment to the department. (b) As an alternative to maintaining the records required by paragraphs (1) to (11), inclusive, of subdivision (a), a registration service may retain a copy of the listing sheet approved by the department for transmitting registration or motor carrier permit documents to the department. (c) Every registration service shall provide each customer with a document containing all of the information required by subdivision (a) relative to that customer's transaction, excluding paragraph (7) and excluding the addresses of employees and other customers' names and addresses. This requirement does not apply to transactions for customers of a dealer or dismantler. (d) Every registration service shall display prominently at its place of business a sign indicating that the service is not a branch of the department and shall inform each customer of that fact. SEC. 5. 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.