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AB-2026 Used vehicle salespersons.(2017-2018)

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Date Published: 04/10/2018 09:00 PM
AB2026:v98#DOCUMENT

Amended  IN  Assembly  April 10, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2026


Introduced by Assembly Member Lackey

February 05, 2018


An act to add Sections 11704.6 and 11801 to the Vehicle Code, relating to vehicle sales.


LEGISLATIVE COUNSEL'S DIGEST


AB 2026, as amended, Lackey. Used vehicle: vehicle salespersons.
Existing law requires a person who acts as a vehicle dealer or salesperson to be licensed by the Department of Motor Vehicles. Existing law additionally requires a person who applies for a used vehicle dealer’s license to complete an educational program of not less than 4 hours, covering specified topics, including motor vehicle financing, advertising, odometers, air pollution control requirements, and departmental forms, and to complete a written exam.
This bill would, with certain exceptions, prohibit a person licensed as a salesperson from performing the functions of a salesperson for a dealer that sells used vehicles unless he or she has completed an the same educational program on the same topics as the program required for licensed dealers within the previous 2 3 years, and to provide evidence of completion to his or her employer. The bill would also require the dealer to maintain evidence that all salespersons employed by that dealer are in compliance with this requirement. The bill would also require a dealer to reimburse an employee, as specified, for the cost of training taken during employment.
Because a violation of these provisions would be a crime, this bill would create a state-mandated local program.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 11704.6 is added to the Vehicle Code, to read:

11704.6.
 (a) Except as provided in subdivision (b), a dealer that sells used vehicles for retail sale shall maintain at the place of business where a salesperson is employed, evidence of the salesperson’s completion, within the previous two three years, of an the preliminary educational program of not less than four hours that addresses, but is not limited to, all of the topics specified described in subdivision (b) of Section 11704.5.
(b) This section shall not apply to any of the following:
(1) A new vehicle dealer that sells only new vehicles or a combination of new and used vehicles at the place of business where the salesperson is employed.
(2) A person who holds a license as an automobile dismantler.
(3) A person who holds a motorcycle only dealer’s license.
(4) A person who holds a trailer only dealer’s license.
(5) A person who holds an all-terrain only dealer’s license.
(6) A salesperson who has been employed by the dealer for less than six months.
(c) (1) The educational program described in subdivision (a) may be provided by generally accredited educational institutions, private vocational schools, and educational programs and seminars offered by professional societies, organizations, or trade associations, or by the department.

(c)

(2) A dealer that sells used vehicles and operates a minimum of 10 branches of the business within the state may provide the educational program required by subdivision (a) to each of its salespersons.
(d) (1) A dealer shall reimburse an employee for the cost of any educational program required to be taken by this section during the period of employment. Reimbursement shall include any registration or course fees, required materials, and compensation for the employee’s time required to take the course at a rate of pay not less than the employee’s regular base hourly rate.
(2) Notwithstanding paragraph (1), a dealer shall not be obligated to reimburse an employee for the cost of the educational program if the employee opts to take the educational program at a time or from a provider other than that which the employer offers, provided that the employer provides reasonable opportunity for the employee to take the educational program at the employer’s expense.

(d)

(e) Compliance with this section is subject to inspection by the department.

SEC. 2.

 Section 11801 is added to the Vehicle Code, to read:

11801.
 (a) A person licensed by the department as a salesperson shall not perform the duties, activities, and functions of a salesperson for a dealer of used vehicles, other than those specifically exempted in subdivision (b) of Section 11704.6, unless the person has completed an educational program as described in subdivision (a) of that section within the previous two three years.
(b) A person licensed by the department as a salesperson is exempt from the requirements of subdivision (a) during his or her first six months of employment with each dealer of used vehicles.

(b)

(c) Except when the educational program required by this section is provided by the employer pursuant to subdivision (c) of Section 11704.6, a salesperson shall provide evidence of completion of the educational program required pursuant to subdivision (a) to each dealer of used vehicles that employs him or her.
(d) Notwithstanding Section 40000.11, a violation of this section is punishable as an infraction.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.