Bill Text

PDF |Add To My Favorites |Track Bill | print page

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

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 02/05/2018 09:00 PM
AB2026:v99#DOCUMENT


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 introduced, Lackey. Used 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 educational program on the same topics as the program required for licensed dealers within the previous 2 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.
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 years, of an educational program of not less than four hours that addresses, but is not limited to, all of the topics specified 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.
(c) 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) 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 years.
(b) 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.

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.