BILL NUMBER: AB 2807 CHAPTERED 08/23/00 CHAPTER 221 FILED WITH SECRETARY OF STATE AUGUST 23, 2000 APPROVED BY GOVERNOR AUGUST 21, 2000 PASSED THE ASSEMBLY AUGUST 7, 2000 PASSED THE SENATE JUNE 29, 2000 AMENDED IN SENATE JUNE 12, 2000 AMENDED IN ASSEMBLY MAY 8, 2000 AMENDED IN ASSEMBLY APRIL 5, 2000 INTRODUCED BY Assembly Member Papan FEBRUARY 28, 2000 An act to amend Section 11704.5 of the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 2807, Papan. Dealers: continuing education. Existing law requires every person, except as specified, applying for a dealer license for the purpose of transporting sale of used vehicles on a retail or wholesale basis only, to take and successfully complete a written examination and to complete a preliminary educational program. This bill would require the persons described above who are required to complete the examinations and educational program and who are thereafter issued a dealer's license every 2 years to successfully complete an educational program of not less than 4 hours that offers instruction in specified subjects and topics in order to maintain or renew that license. The bill would exempt a dealer from the requirement to complete the education program if the educational program is completed by a managerial employee employed by the dealer. Because a violation of this provision would be a crime under existing law, the bill would impose a state-mandated local program by creating a new crime. 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 11704.5 of the Vehicle Code is amended to read: 11704.5. (a) Except as provided in subdivision (e), every person who applies for a dealer's license pursuant to Section 11701 for the purpose of transacting sales of used vehicles on a retail or wholesale basis only shall be required to take and successfully complete a written examination prepared and administered by the department before a license may be issued. The examination shall include, but need not be limited to, all of the following laws and subjects: (1) Division 12 (commencing with Section 24000), relating to equipment of vehicles. (2) Advertising. (3) Odometers. (4) Vehicle licensing and registration. (5) Branch locations. (6) Offsite sales. (7) Unlawful dealer activities. (8) Handling, completion, and disposition of departmental forms. (b) Prior to the first taking of an examination under subdivision (a), every applicant shall successfully complete a preliminary educational program of not less than four hours. The program shall address, but not be limited to, all of the following topics: (1) Chapter 2B (commencing with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code, relating to motor vehicle sales finance. (2) Motor vehicle financing. (3) Truth in lending. (4) Sales and use taxes. (5) Division 12 (commencing with Section 24000), relating to equipment of vehicles. (6) Advertising. (7) Odometers. (8) Vehicle licensing and registration. (9) Branch locations. (10) Offsite sales. (11) Unlawful dealer activities. (12) Air pollution control requirements. (13) Regulations of the Bureau of Automotive Repair. (14) Handling, completion, and disposition of departmental forms. (c) (1) Except as provided in paragraph (2), every dealer who is required to complete a written examination and an educational program pursuant to subdivisions (a) and (b) and who is thereafter issued a dealer's license shall every two years after issuance of that license, successfully complete an educational program of not less than four hours that offers instruction in the subjects listed under subdivision (a) and the topics listed under subdivision (b) in order to maintain or renew that license. (2) A dealer is not required to complete the educational program set forth in paragraph (1) if the educational program is completed by a managerial employee employed by the dealer. (d) Instruction described in subdivisions (b) and (c) may be provided by generally accredited educational institutions, private vocational schools, and educational programs and seminars offered by professional societies, organizations, trade associations, and other educational and technical programs that meet the requirements of this section or by the department. (e) This section does not apply to any of the following: (1) An applicant for a new vehicle dealer's license or any employee of that dealer. (2) A person who holds a valid license as an automobile dismantler, an employee of that dismantler, or an applicant for an automobile dismantler's license. (3) An applicant for a motorcycle only dealer's license or any employee of that dealer. (4) An applicant for a trailer only dealer's license or any employee of that dealer. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.