BILL NUMBER: AB 1777 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Lackey
FEBRUARY 3, 2016
An act to add Section 11805 to the Vehicle Code, relating to
vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 1777, as introduced, 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,
except that an applicant for renewal would be required to complete
the continuing education requirements every 3 years. 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 1. Section 11805 is added to the Vehicle Code, to read:
11805. (a) An applicant for licensure who is employed by a dealer
that sells only used vehicles for retail sale shall complete the
educational program specified in subdivision (b) of Section 11704.5.
(b) An applicant for renewal of a license who is employed by a
dealer that sells only used vehicles for retail sale shall complete,
every three years from the issuance of the license, the educational
program specified in subdivision (c) of Section 11704.5.
(c) A salesperson shall provide evidence of completion of the
educational requirements specified in subdivisions (a) and (b) to the
motor vehicle dealer that employs the salesperson.
(d) (1) The dealer shall maintain a copy of the evidence of
completion at the location where the salesperson is employed.
(2) A dealer's compliance with paragraph (1) is subject to
inspection by the department.