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, unless the dealerbegin insert owns a minimum of 10 branches of the business within the state andend insert provides a minimum of 10 hours ofbegin insert educationalend insert training per year to its salespersons. 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 shall complete
9the educational program specified in subdivision (c) of Section
1011704.5.
11(c) A salesperson shall provide evidence of completion of the
12educational requirements specified in subdivisions (a) and (b) to
13the motor vehicle dealer that employs the salesperson.
14(d) (1) The dealer shall maintain a copy of the evidence of
15completion at the location where the salesperson is employed.
16(2) A dealer’s compliance with paragraph (1) is subject to
17inspection by the department.
18(e) This section does not apply to an applicant who is employed
19by a dealer thatbegin insert owns a minimum of 10 branches of the business
20within the state andend insert provides a minimum ofbegin delete tenend deletebegin insert 10end insert hours of
21begin insert
educationalend insert training per year to its salespersons.
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