BILL ANALYSIS                                                                                                                                                                                                    


          |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

          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  

          State law requires that vehicle dealers post in a  
          conspicuous, public place in each and every location where  


                                                               SB 1004

          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  

          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  

          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  


                                                               SB 1004

          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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