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

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Date Published: 08/25/2018 04:00 AM
AB2026:v94#DOCUMENT

Enrolled  August 24, 2018
Passed  IN  Senate  August 20, 2018
Passed  IN  Assembly  August 23, 2018
Amended  IN  Senate  August 13, 2018
Amended  IN  Senate  June 25, 2018
Amended  IN  Senate  June 06, 2018
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, 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 a preliminary educational program of not less than 4 hours, covering specified topics, including motor vehicle financing, advertising, odometers, air pollution control requirements, departmental forms, a written exam, and another educational program every 2 years after issuance of the license.
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, within the previous 3 years, completed the same educational program as the educational program required for licensed dealers every 2 years after issuance of the dealer’s license, 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.
The bill would make these new provisions operative on July 1, 2019.
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 three years, of the educational program described in paragraph (1) subdivision (c) 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 only 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.
(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.
(e) Compliance with this section is subject to inspection by the department.
(f) This section shall become operative on July 1, 2019.

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, unless the person has completed the educational program described in subdivision (a) of Section 11704.6 within the previous 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.
(c) The requirements of subdivision (a) do not apply to a person performing the duties, activities, and functions of a salesperson for any of the following:
(1) A new vehicle dealer that sells only new vehicles or a combination of new and used vehicles.
(2) A licensed automobile dismantler.
(3) A licensed motorcycle only dealer.
(4) A licensed trailer only dealer.
(5) A licensed all-terrain only dealer.
(d) 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.
(e) Notwithstanding Section 40000.11, a violation of this section is punishable as an infraction.
(f) This section shall become operative on July 1, 2019.

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.