BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1004|
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THIRD READING
Bill No: SB 1004
Author: Huff (R), et al
Amended: 3/16/10
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-0, 3/23/10
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Kehoe,
Oropeza, Pavley, Simitian
NO VOTE RECORDED: Harman
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Vehicles: licensed dealers and salespersons
SOURCE : California New Motor Car Dealers Association
DIGEST : This bill allows a vehicle dealer to post copies
of occupational licenses, rather than the original
licenses, for the dealer and the salespersons the dealer
employs. It also allows a vehicle salesperson to work for
multiple dealerships, provided that those dealerships share
a common controlling ownership.
ANALYSIS : Existing law charges the Department of Motor
Vehicles (DMV) with licensing and regulating motor vehicle
dealers and salespersons who conduct business in
California.
State law requires that vehicle dealers post in a
conspicuous, public place in each and every location where
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the dealer does business the dealer's DMV-issued dealer's
license plus the DMV-issued license of each salesperson
employed by that dealer at that location. Each licensed
sales person employed by a dealer must provide that dealer
with his/her salesperson license for posting. In addition,
existing law precludes a salesperson from working for more
than one dealer, although he/she can work at different
locations of a single dealer, provided each location has
identical ownership and structure.
Existing law permits DMV to refuse to issue or to revoke or
suspend a vehicle salesperson's license if, among other
things, the salesperson has acted as a salesperson for more
than one licensed dealer. State law also makes it illegal
for a person to duplicate a vehicle salesperson's license
in such a way that it could be mistaken for a valid
license.
This bill:
1.Allows a vehicle dealer to post a copy, rather than the
original, of the dealer's and each salesperson's
DMV-issued occupational license.
2.Makes it legal to duplicate a vehicle salesperson's
license for purposes of displaying that license at the
dealership or dealerships where the salesperson works.
3.Makes it legal for a vehicle salesperson to work for more
than one dealer, provided that all of the dealers for
whom the salesperson works share a common controlling
ownership, which the bill defines as a structure in which
more than 50 percent of the ownership interests in each
dealer are held by the same person or persons, either
directly or through one or more wholly owned subsidiary
entities.
Background
The author's office introduced this bill to update
California law governing motor vehicle dealers and
salespersons to reflect changes in the operation and
structure of companies selling motor vehicles. This bill
specifically recognizes that dealerships today are
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organized in a wide variety of structures from sole
proprietorships to publicly traded corporations. State law
governing dealers' employment of salespersons dates from a
bygone era. This bill changes that law to allow dealers to
post copies, rather than originals, of occupational
licenses. It also allows a salesperson to work for
multiple dealerships so long as 50 percent the ownership of
each dealership is the same.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 4/26/10)
California New Motor Car Dealers Association
JJA:do 4/26/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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