AB 1777, as amended, Lackey. Used vehicle sales: salespersons’ licenses.
Existing law requires every manufacturer, distributor, transporter, and dealer of motor vehicles to obtain a license or temporary permit from the Department of Motor Vehicles before engaging in business. Under existing law, each person who applies for a dealer’s license for the purpose of transacting sales of used vehicles is required to successfully complete a written examination before a license may be issued. Existing law also requires each applicant to successfully complete a preliminary educational program of not less than 4 hours before taking the examination. Existing law further requires a licenseholder to complete an educational program of not less than 4 hours every 2 years after issuance of the license.
Existing law also requires every vehicle salesperson to obtain a license or temporary permit before engaging in vehicle sales, and provides that the license is valid for 3 years from the date of issuance.
This bill would require an applicant for a vehicle salesperson’s license or renewal of a salesperson’s license who is employed by a dealer that sells only used vehicles for retail sale to complete the above-described educational programs applicable to vehicle dealers,begin delete except that an applicant for renewal would be required to complete the continuing education requirements every 3 years.end deletebegin insert unless the dealer provides a minimum of 10 hours of training per year to its salespersons.end insert The bill would require the dealer to maintain a copy of the salesperson’s evidence of completion of the educational requirements at the location where the salesperson is employed, subject to inspection by the
department.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 11805 is added to the Vehicle Code, to
2read:
(a) An applicant for licensure who is employed by a
4dealer that sells only used vehicles for retail sale shall complete
5the educational program specified in subdivision (b) of Section
611704.5.
7(b) An applicant for renewal of a license who is employed by
8a dealer that sells only used vehicles for retail sale shallbegin delete complete, begin insert completeend insert the
9every three years from the issuance of the license,end delete
10educational program specified in subdivision (c) of Section
1111704.5.
12(c) A salesperson shall provide evidence of completion of the
13educational requirements specified in subdivisions (a) and (b) to
14the motor vehicle dealer that employs the salesperson.
15(d) (1) The dealer shall maintain a copy of the evidence of
16completion at the location where the salesperson is employed.
17(2) A dealer’s compliance with paragraph (1) is subject to
18inspection by the department.
19(e) This section does not apply to an applicant who is employed
20by a dealer that provides a minimum of ten hours of training per
21year to its salespersons.
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