BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 1004
Author: Huff (R), et al
Amended: 8/16/10
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
SENATE FLOOR : 34-0, 5/3/10 (Consent)
AYES: Aanestad, Ashburn, Cedillo, Cogdill, Corbett,
Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez,
Hancock, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu,
Lowenthal, Negrete McLeod, Oropeza, Padilla, Pavley,
Price, Romero, Runner, Simitian, Strickland, Walters,
Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Alquist, Calderon, Steinberg, Wiggins,
Vacancy, Vacancy
ASSEMBLY FLOOR : 76-0, 8/17/10 - See last page for vote
SUBJECT : Vehicles: licensed dealers and salespersons:
credit scores
SOURCE : California New Motor Car Dealers Association
DIGEST : This bill allows a vehicle dealer to post copies
CONTINUED
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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, and requires a motor
vehicle dealer, for each credit report he or she obtains
for use in connection with a consumer's credit application,
to provide that consumer a summary of the information, as
specified.
Assembly Amendments require a motor vehicle dealer, for
each credit report he or she obtains for use in connection
with a consumer's credit application, to provide that
consumer a summary of the information from the credit
report that corresponds to the current federal credit score
reporting requirements that apply to vehicle dealers, and
allow the Department of Motor Vehicles to refund a dealer's
cash deposit that has been submitted in lieu of a dealer
bond after five years from the date a bond is secured.
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
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.
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This bill:
1. Allows motor vehicle dealers and salespersons to post
exact copies of their licenses, in lieu of the actual
licenses, at the dealer's place of business.
2. Allows a salesperson to work for more than one dealer if
all of the dealers for whom he or she works have common
controlling ownership, which is defined as when more
than 50% 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.
3. Requires the salesperson's license, or license copy, to
be posted at each dealership where he or she is
employed.
4. Requires any copy of the salesperson's license to be
destroyed by the dealer upon termination of the
salesperson's employment with that dealer.
5. Allows DMV to refund a dealer's cash deposit that has
been submitted in lieu of a dealer bond after five years
from the date a bond is secured and maintained, if the
DMV is satisfied there are no outstanding claims against
that deposit.
6. Requires a motor vehicle dealer, for each credit report
he or she obtains for use in connection with a
consumer's credit application, to provide that consumer
a summary of the information from the credit report that
corresponds to the current federal credit score
reporting requirements that apply to vehicle dealers.
7. Provides that this requirement does not limit or
restrict any rights or remedies otherwise available
under existing law.
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
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structure of companies selling motor vehicles. This bill
specifically recognizes that dealerships today are
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 8/18/10)
California New Motor Car Dealers Association
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Carter, Chesbro, Conway,
Cook, Coto, Davis, De Leon, DeVore, Eng, Evans, Feuer,
Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey,
Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,
Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma,
Mendoza, Miller, Monning, Nava, Nestande, Niello,
Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, John A. Perez
NO VOTE RECORDED: Blakeslee, Charles Calderon, De La Torre,
Vacancy
JJA:do 8/18/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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