Vehicle Code — Part 2 | VEH — United States — California law | Esheria

Vehicle Code

Part 2 of 19 · provisions 201–400

This section says the act is named the Vehicle Code.

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The definitions in this code apply when construing the code unless the provision or context requires otherwise. “Ability to respond in damages” means financial responsibility. Police officers must report stolen-vehicle and lost-or-stolen plate information to the Department of Justice system, and the reporting agency must notify the reporting party when a vehicle is recovered. A person must not make or file a false or fraudulent vehicle-theft report with any law enforcement agency, if done with intent to deceive. A vehicle’s owner or legal owner may report theft or embezzlement to the California Highway Patrol, and must report recovery after making that notice.

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Provisions of Vehicle Code

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  1. 11609.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    A lessor-retailer selling used vehicles at retail must post a conspicuous notice of a specified size that tells prospective purchasers they may get an inspection by an independent third party, at their own expense and with the lessor-retailer’s approval.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11609.5. Every lessor-retailer who displays or offers one or more used vehicles for sale at retail shall post a notice not less than 8 inches high and 10 inches wide, in a place conspicuous to the public, which states the following: “The prospective purchaser of a vehicle may, at his or her own expense and with the approval of the lessor-retailer, have the vehicle inspected by an independent third party either on or off these premises.” (Added by Stats. 1990, Ch. 1563, Sec. 35.)
  2. 11610.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    A lessor-retailer must promptly tell the department when its business location changes or it stops possessing a listed business location, and must turn in the related license and, on demand, sale-report books.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11610. (a) If the lessor-retailer changes the location of its principal place of business or any branch office location in California, the lessor-retailer shall immediately upon making the change notify the department. (b) If a lessor-retailer, for any reason, ceases to be in possession of its principal place of business or any branch office location, the lessor-retailer shall immediately notify the department, and shall deliver to the department the lessor-retailer license issued for the location, and, upon demand, all report of sale books in his or her possession. (c) Any person licensed under this chapter who has closed his or her principal place of business may be served with process issued pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code by registered mail at that place of business, unless the person has notified the department in writing of another address where service may be made. (Amended by Stats. 1990, Ch. 216, Sec. 114.)
  3. 11612.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    An applicant for a lessor-retailer license must file a bond with the department before the license is issued or renewed.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11612. (a) Before any lessor-retailer license shall be issued or renewed by the department to any applicant therefor, the applicant shall procure and file with the department a bond meeting the same requirements as specified for a vehicle dealer’s license in Sections 11710 and 11710.2. (b) Any cause of action or claim specified in Section 11711 against a vehicle dealer’s bond shall also be a cause of action or claim against a lessor-retailer’s bond. (Amended by Stats. 1982, Ch. 517, Sec. 395.)
  4. 11613.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    The department may suspend or revoke a lessor-retailer’s license after notice and hearing if specified misconduct or disqualification is found.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11613. (a) The department, after notice and hearing, may suspend or revoke the license issued to a lessor-retailer upon determining that the person to whom the license was issued is not lawfully entitled thereto, or has done any of the following: (1) Filed an application for the license using a false or fictitious name not registered with the proper authorities, or knowingly made any false statement or knowingly concealed any material fact, in the application for the license. (2) Used a false or fictitious name, knowingly made any false statement or knowingly concealed any material fact in any application for the registration of a vehicle, or otherwise committed a fraud in the application. (3) Knowingly purchased, sold, or otherwise acquired or disposed of a stolen motor vehicle. (4) Violated any provision of Division 3 (commencing with Section 4000) or rule or regulation adopted pursuant thereto. (5) Violated any provision of Division 4 (commencing with Section 10500) or rule or regulation adopted pursuant thereto. (6) Violated any provision of this chapter or rule or regulation adopted pursuant thereto. (7) Violated any provision of Chapter 2b (commencing with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code or rule or regulation adopted pursuant thereto under the authority of Section 1651. (8) Submitted a check, draft, or money order to the department for any obligation or fee due the state which was thereafter dishonored or refused payment upon presentation. (9) Caused any person to suffer any loss or damage by reason of any fraud or deceit practiced on, or fraudulent representations made to, that person in the sale of a vehicle or parts or accessories thereof. For purposes of this subdivision, “fraud” includes any act or omission which is included within the definition of either “actual fraud” or “constructive fraud” as defined in Sections 1572 and 1573 of the Civil Code, and “deceit” has the same meaning as defined in Section 1710 of the Civil Code. In addition, “fraud” and “deceit” include, but are not limited to, a misrepresentation in any manner, whether intentionally false or due to gross negligence, of a material fact; a promise or representation not made honestly and in good faith; an intentional failure to disclose a material fact; and any act within Section 484 of the Penal Code. For purposes of this subdivision, “person” also includes a governmental entity. (b) Any of the causes specified in this chapter as a cause for refusal to issue a license to a lessor-retailer applicant is cause to suspend or revoke a license issued to a lessor-retailer. (c) Every hearing provided for in this section shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 1990, Ch. 1563, Sec. 36.)
  5. 11613.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    After an accusation is filed, the director may enter a compromise settlement agreement if the licensee consents; the department must set penalty ranges by regulation; and the agreement must be signed and filed to be valid.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11613.5. (a) After the filing of an accusation under this chapter, the director may enter into a stipulated compromise settlement agreement with the consent of the licensee on terms and conditions mutually agreeable to the director, the respondent licensee, and the accuser without further hearing or appeal. The agreement may include, but is not limited to, a period of probation or monetary penalties, or both. The monetary penalty shall not exceed one thousand dollars ($1,000) for each violation, and it shall be based on the nature of the violation and the effect of the violation on the purposes of this chapter. (b) A compromise settlement agreement may be entered before, during, or after the hearing, but is valid only if executed and filed pursuant to subdivision (d) before the proposed decision of the hearing officer, if any, is adopted or the case is decided. (c) The department shall adopt, by regulation, a schedule of maximum and minimum amounts of monetary penalties, the payment of which may be included as a term or condition of a compromise settlement agreement entered under subdivision (a). Any monetary penalty included in a compromise settlement agreement shall be within the range of monetary penalties in that schedule. (d) Any compromise settlement agreement entered under this section shall be signed by the director, the respondent licensee, and the accuser, or by their authorized representatives. The director shall file, or cause to be filed, the agreement with the Office of Administrative Hearings, together with the department’s notice of withdrawal of the accusation or statement of issues upon which the action was initiated. (e) If the respondent licensee fails to perform all of the terms and conditions of the compromise settlement agreement, the agreement is void and the department may take any action authorized by law notwithstanding the agreement, including, but not limited to, refiling the accusation or imposing license sanctions. (Added by Stats. 1985, Ch. 1022, Sec. 18.)
  6. 11614.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    A licensed lessor-retailer may not use misleading advertising or other prohibited sales practices, and must withdraw a vehicle ad in writing within 48 hours after the vehicle is sold or withdrawn from sale.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11614. No lessor-retailer licensed under this chapter may do any of the following in connection with any activity for which this license is required: (a) Make or disseminate, or cause to be made or disseminated, before the public in this state, in any newspaper or other publication, or any advertising device, or by oral representation, or in any other manner or means whatever, any statement that is untrue or misleading and that is known, or which by the exercise of reasonable care should be known, to be untrue or misleading; or make or disseminate, or cause to be made or disseminated, any statement as part of a plan or scheme with the intent not to sell any vehicle, or service so advertised, at the price stated therein, or as so advertised. (b) Advertise, or offer for sale in any manner, any vehicle not actually for sale at the premises of the lessor-retailer or available within a reasonable time to the lessor-retailer at the time of the advertisement or offer. (c) Fail within 48 hours to give, in writing, notification to withdraw any advertisement of a vehicle that has been sold or withdrawn from sale. (d) Advertise any specific vehicle for sale without identifying the vehicle by its model, model year, and either its license number or that portion of the vehicle identification number that distinguishes the vehicle from all other vehicles of the same make, model, and model-year. Model-year is not required to be advertised for current model-year vehicles. Year models are no longer current when ensuing year models are available for purchase at retail in California. (e) Advertise the total price of a vehicle without including all costs to the purchaser at the time of delivery at the lessor-retailer’s premises, except sales tax, vehicle registration fees, finance charges, certificate of compliance or noncompliance fees not exceeding thirty-five dollars ($35) pursuant to any statute, and any dealer documentary preparation charge. The dealer documentary charge shall not exceed thirty-five dollars ($35). (f) (1) Fail to disclose, in an advertisement of a vehicle for sale, that there will be added to the advertised total price, at the time of sale, charges for sales tax, vehicle registration fees, the fee charged by the state for the issuance of any certificate of compliance or noncompliance pursuant to any statute, finance charges, or any dealer documentary preparation charge. (2) For purposes of paragraph (1), “advertisement” means any advertisement in a newspaper, magazine, direct mail publication, or handbill that is two or more columns in width or one column in width and more than seven inches in length, or on any Web page of a lessor-retailer’s Web site that displays the price of a vehicle offered for sale on the Internet, as that term is defined in paragraph (6) of subdivision (e) of Section 17538 of the Business and Professions Code. (g) Advertise or otherwise represent, or knowingly allow to be advertised or represented on the lessor-retailer’s behalf or at the lessor-retailer’s place of business, that no downpayment is required in connection with the sale of a vehicle when a downpayment is in fact required and the buyer is advised or induced to finance the downpayment by a loan in addition to any other loan financing the remainder of the purchase price of the vehicle. The terms “no downpayment,” “zero down delivers,” or similar terms shall not be advertised unless the vehicle will be sold to any qualified purchaser without a prior payment of any kind or trade-in. (h) Refuse to sell a vehicle to any person at the advertised total price, exclusive of sales tax, vehicle registration fees, finance charges, certificate of compliance or noncompliance pursuant to any statute, and any dealer documentary preparation charge, which charges shall not exceed thirty-five dollars ($35) for the documentary preparation charge and thirty-five dollars ($35) for the certificate of compliance or noncompliance pursuant to any statute, while the vehicle remains unsold or unleased, unless the advertisement states the advertised total price is good only for a specified time and the time has elapsed. (i) Engage in the business for which the licensee is licensed without having in force and effect a bond required by Section 11612. (j) Engage in the business for which the lessor-retailer is licensed without at all times maintaining a principal place of business and any branch office location required by this chapter. (k) Permit the use of the lessor-retailer license, supplies, or books by any other person for the purpose of permitting that person to engage in the sale of vehicles required to be registered under this code, or to permit the use of the lessor-retailer license, supplies, or books to operate a branch office location to be used by any other person, if, in either situation, the licensee has no financial or equitable interest or investment in the vehicles sold by, or the business of, or branch office location used by, the person, or has no interest or investment other than commissions, compensations, fees, or any other thing of value received for the use of the lessor-retailer license, supplies, or books to engage in the sale of vehicles. (l) Violate any provision of Article 10 (commencing with Section 28050) of Chapter 5 of Division 12. (m) Represent the dealer documentary preparation charge, or certificate of compliance or noncompliance fee, as a governmental fee. (n) Advertise free merchandise, gifts, or services provided by a lessor-retailer contingent on the purchase of a vehicle. “Free” includes merchandise or services offered for sale at a price less than the lessor-retailer’s cost of the merchandise or services. (o) Advertise vehicles and related goods or services with the intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity. (p) Use the term “rebate” or similar words such as “cash back” in advertising the sale of a vehicle. (q) Require a person to pay a higher price for a vehicle and related goods or services for receiving advertised credit terms than the cash price the same person would have to pay to purchase the same vehicle and related goods or services. For the purpose of this subdivision, “cash price” has the meaning as defined in subdivision (e) of Section 2981 of the Civil Code. (r) Misrepresent the authority of a representative or agent to negotiate the final terms of a transaction. (s) Violate any law prohibiting bait and switch advertising, including, but not limited to, the guides against bait advertising set forth in Part 238 of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1988. (t) Make any untrue or misleading statement indicating that a vehicle is equipped with all the factory installed optional equipment the manufacturer offers, including, but not limited to, a false statement that a vehicle is “fully factory equipped.” (u) Advertise any underselling claim, such as “we have the lowest prices” or “we will beat any dealer’s price,” unless the lessor-retailer has conducted a recent survey showing that the lessor-retailer sells its vehicles at lower prices than any other licensee in its trade area and maintains records to adequately substantiate the claim. The substantiating records shall be made available to the department upon request. (v) To display or offer for sale any used vehicle unless there is affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide as required by Part 455 of Title 16 of the Code of Federal Regulations. (w) This section shall become operative on July 1, 2001. (Amended by Stats. 2002, Ch. 947, Sec. 1. Effective January 1, 2003.)
  7. 11614.1.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    Lessor-retailers licensed under this chapter must not use misleading vehicle advertisements or omit required disclosures in vehicle sales ads.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11614.1. No lessor-retailer licensed under this chapter may do any of the following in connection with any activity for which this license is required: (a) Use a picture in connection with any advertisement of the price of a specific vehicle or class of vehicles, unless the picture is of the year, make, and model being offered for sale. The picture may not depict a vehicle with optional equipment or a design not actually offered at the advertised price. (b) Advertise a vehicle for sale that was used by the selling lessor-retailer in its business as a demonstrator, executive vehicle, service vehicle, rental, loaner, or lease vehicle, unless the advertisement clearly and conspicuously discloses the previous use made by that licensee of the vehicle. An advertisement may not describe any of those vehicles as “new.” (c) Advertise any used vehicle of the current or prior model-year without expressly disclosing the vehicle as “used,” “previously owned,” or a similar term that indicates that the vehicle is used, as defined in this code. (d) Use the terms “on approved credit” or “on credit approval” in an advertisement for the sale of a vehicle unless those terms are clearly and conspicuously disclosed and unabbreviated. (e) Advertise an amount described by terms such as “unpaid balance” or “balance can be financed” unless the total sale price is clearly and conspicuously disclosed and is in close proximity to the advertised balance. (f) Advertise credit terms that fail to comply with the disclosure requirements of Section 226.24 of Title 12 of the Code of Federal Regulations. Advertisements of terms that include escalated payments, balloon payments, or deferred downpayments shall clearly and conspicuously identify those payments as to amounts and time due. (g) Advertise claims such as “everyone financed,” “no credit rejected,” or similar claims unless the dealer is willing to extend credit to any person under any and all circumstances. (h) Advertise the amount of any downpayment unless it represents the total payment required of a purchaser prior to delivery of the vehicle, including any payment for sales tax or license. A statement such as “$____ delivers,” is an example of an advertised downpayment. (i) Fail to clearly and conspicuously disclose in an advertisement for the sale of a vehicle any disclosure required by this code or any qualifying term used in conjunction with advertised credit terms. Unless otherwise provided by statute, the specific size of disclosures or qualifying terms is not prescribed. (Amended by Stats. 2003, Ch. 62, Sec. 302. Effective January 1, 2004.)
  8. 11615.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    A licensed lessor-retailer selling a vehicle at retail in a covered transaction must not do the listed acts, including delivering a noncompliant vehicle, failing to provide endorsed title, or selling/displaying vehicles outside the allowed business setup.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11615. It shall be unlawful and a violation of this code for a lessor-retailer licensed under this chapter when selling at retail a vehicle in a transaction for which this license is required: (a) To deliver, following sale, a vehicle for operation on California highways, if such vehicle does not meet all of the equipment requirements of Division 12 (commencing with Section 24000) of this code. (b) To fail to deliver to a transferee lawfully entitled thereto a properly endorsed certificate of ownership. (c) To violate any of the terms or provisions of Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code or rules and regulations adopted pursuant thereto or adopted pursuant to Section 1651 of this code. (d) To take a vehicle in trade in part or total payment for a vehicle sold by the lessor-retailer. (e) To sell a vehicle which has not been previously leased, bailed or rented or acquired or contracted for lease or rental by the lessor-retailer. (f) To display a vehicle for sale at a location other than the principal place of business or branch office authorized by the department for that lessor-retailer. (Amended by Stats. 1990, Ch. 1563, Sec. 36.7.)
  9. 11615.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    A licensed person under this chapter may not make a retail sale of a motor vehicle unless the sale is to the lessee and the required sales tax return and payment are made.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11615.5. It is unlawful and a violation of this code for a person holding a license under this chapter to make a retail sale of a motor vehicle, except to the lessee of such vehicle, required to be registered pursuant to Division 3 (commencing with Section 4000) or subject to identification pursuant to Division 16.5 (commencing with Section 38000) if such person files with the department a report of sale as provided in Section 4456 with respect to such retail sale, without making the return and payment of any sales tax due and required by Section 6451 of the Revenue and Taxation Code. (Amended by Stats. 1979, Ch. 373.)
  10. 11616.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    A lessor-retailer must refund any excess amount collected from a vehicle purchaser for licensing or title transfer.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11616. If a purchaser of a vehicle pays to the lessor-retailer an amount for the licensing or transfer of title of the vehicle, which amount is in excess of the actual fees due for such licensing or transfer, or which amount is in excess of the amount which has been paid, prior to the sale, by the lessor-retailer to the state in order to avoid penalties that would have accrued because of late payment of such fees, the lessor-retailer shall return such excess amount to the purchaser, whether or not such purchaser requests the return of the excess amount. (Added by Stats. 1976, Ch. 1284.)
  11. 11617.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    This section says the chapter license, and the branch office location license, are automatically canceled if specified events happen.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11617. (a) The license provided for in this chapter shall be automatically canceled upon the happening of any of the following: (1) The abandonment of the principal place of business of the lessor-retailer or the change thereof without notice to the department as provided in Section 11610. (2) The failure of the licensee to maintain an adequate bond or to procure and file another bond as required by Section 11612 prior to the effective date of the termination by the surety of any existing bond. (3) The voluntary or involuntary surrender for any cause by the licensee of the license, except that a surrender of the license, or cessation of business by the licensee, or the suspension or revocation of the corporate status of the licensee, does not preclude the filing of an accusation for revocation or suspension of the surrendered license as provided in Section 11613, and does not affect the department’s decision to suspend or revoke the license. The department’s determination to suspend or revoke the license may be considered in issuing or refusing to issue any subsequent license authorized by this division to that licensee or any business representative of that licensee. (4) Notification to the department that the person designated as licensee has changed. (5) The suspension or cancellation of the corporate status of the licensee. (6) The suspension, revocation, or cancellation of the seller’s permit of the licensee by the California Department of Tax and Fee Administration pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. (b) The branch office location license provided for in this chapter shall be automatically canceled upon the abandonment of the branch office location of the lessor-retailer or the change of that branch office without notice to the department as provided in Section 11610. (Amended by Stats. 2022, Ch. 295, Sec. 9. (AB 2956) Effective January 1, 2023.)
  12. 11618.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    The department may temporarily suspend a lessor-retailer license for up to 30 days before a hearing if the director finds it is required in the public interest.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11618. The department may, pending a hearing, temporarily suspend the license issued to a lessor-retailer for a period not to exceed 30 days, if the director finds that such action is required in the public interest. In any such case a hearing shall be held and a decision thereon issued within 30 days after notice of the temporary suspension. Every hearing as provided for in this section shall be pursuant to the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 1976, Ch. 1284.)
  13. 11620.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. )

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    Occupational licenses under this chapter last one year, and renewal has to be applied for within the stated time limits and fee rules.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 3.5. Lessor-Retailers [11600 - 11620] ( Chapter 3.5 added by Stats. 1976, Ch. 1284. ) ## 11620. (a) Every occupational license issued under this chapter shall be valid for a period of one year from midnight of the last day of the month of issuance. Except as provided in subdivision (c), renewal of an occupational license for the ensuing year may be obtained by the person to whom the occupational license was issued upon application to the department and payment of the fee provided in this code. (b) Every application for the renewal of an occupational license which expires pursuant to this section shall be made by the person to whom issued not more than 90 days prior to the expiration date, and shall be made by presenting the completed application form provided by the department and by payment of the full annual renewal fee for the occupational license. (c) If the application for renewal of the occupational license is not made by midnight of the expiration date, the application may be made within 30 days following expiration of the license by paying the annual renewal fee and a penalty fee equal to the amount of the original application fee for each occupational license held. (d) In no event may the licensee renew the occupational license after the expiration of the 30-day period authorized in subdivision (c). (Amended by Stats. 1984, Ch. 499, Sec. 11.)
  14. 11700.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A person may not act as a dealer, manufacturer, transporter, or related branch/distributor role without the required license or a temporary permit. If licensing has ended, certain vehicles must be returned or may be sold only in the limited wholesale exception.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11700. No person shall act as a dealer, remanufacturer, manufacturer, or transporter, or as a manufacturer branch, remanufacturer branch, distributor, or distributor branch, without having first been issued a license as required in Section 11701 or temporary permit issued by the department, except that, when the license or temporary permit has been canceled, suspended, or revoked or has expired, any vehicle in the dealer’s inventory and owned by the dealer when the dealer ceased to be licensed may be sold at wholesale to a licensed dealer. The former licensee shall give the purchasing dealer a statement of facts stating that the seller is not a licensed dealer. Any vehicle on consignment with the dealer when the dealer ceased to be licensed shall be returned to the consignor. Any vehicle in the dealer’s possession, but not owned by the dealer and not on consignment when the dealer ceased to be licensed, shall be returned to the owner of the vehicle. (Amended by Stats. 1990, Ch. 1563, Sec. 38.)
  15. 11700.1.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Some out-of-state vehicle dealers are exempt from licensure under this article if their California activity is limited to importing vehicles for sale to, or exporting vehicles purchased from, licensed California persons.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11700.1. A dealer who does not have an established place of business in this state but who is currently authorized to do business as, and who has an established place of business as, a vehicle dealer in another state is not subject to licensure under this article if the business transacted in California is limited to the importation of vehicles for sale to, or the export of vehicles purchased from, persons licensed in California under this chapter. (Added by Stats. 1979, Ch. 1088.)
  16. 11700.2.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer with an autobroker’s endorsement must follow the same licensing, advertising, and other statutory and regulatory requirements and prohibitions that apply to a dealer.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11700.2. A dealer who obtains an autobroker’s endorsement to his or her dealer’s license is subject to all of the licensing, advertising, and other statutory and regulatory requirements and prohibitions applicable to a dealer, regardless of whether that dealer acts as the buyer of a vehicle, the seller of a vehicle, or provides brokering services on behalf of another or others for the purpose of arranging, negotiating, assisting, or effectuating the sale of a vehicle not owned by that dealer. (Added by Stats. 1995, Ch. 211, Sec. 4. Effective January 1, 1996.)
  17. 11700.3.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    No person may aid and abet another person in violating this chapter.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11700.3. No person may aid and abet a person in the performance of any act in violation of this chapter. (Added by Stats. 2002, Ch. 407, Sec. 1. Effective January 1, 2003.)
  18. 11701.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Certain vehicle-related manufacturers, distributors, transporters, and dealers must apply to the department for a license with a general distinguishing number and provide proof of their status when reasonably required.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11701. Every manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer of vehicles of a type subject to registration, or snowmobiles, motorcycles, all-terrain vehicles, or trailers of a type subject to identification, shall make application to the department for a license containing a general distinguishing number. The applicant shall submit proof of his or her status as a bona fide manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer as may reasonably be required by the department. (Amended by Stats. 2004, Ch. 836, Sec. 8. Effective January 1, 2005.)
  19. 11702.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue or refuse a license for certain vehicle-related applicants, and refusal must be for reasonable cause shown.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11702. The department may issue, or for reasonable cause shown, refuse to issue a license to any applicant applying for a manufacturer's, manufacturer’s branch, remanufacturer's, remanufacturer’s branch, distributor's, distributor’s branch, transporter's, or dealer’s license. (Amended by Stats. 1983, Ch. 1286, Sec. 26.)
  20. 11703.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may refuse to issue certain vehicle-industry licenses if listed disqualifying conditions are met.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11703. The department may refuse to issue a license to a manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer, if it determines any of the following: (a) The applicant was previously the holder, or a managerial employee of the holder, of a license issued under this chapter which was revoked for cause and never reissued by the department, or which was suspended for cause and the terms of suspension have not been fulfilled. (b) The applicant was previously a business representative of a business whose license issued under this chapter was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled. (c) If the applicant is a business, a business representative of the business was previously the holder of a license, or was a business representative of a business whose license, issued under this chapter was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled; or, by reason of the facts and circumstances related to the organization, control, and management of the business, the operation of that business will be directed, controlled, or managed by individuals who, by reason of their conviction of violations of the provisions of this code, would be ineligible for a license and, by licensing the business, the purposes of this chapter would be defeated. (d) The applicant, or a business representative if the applicant is a business, has been convicted of a crime or committed an act or engaged in conduct involving moral turpitude which is substantially related to the qualifications, functions, or duties of the licensed activity. A conviction after a plea of nolo contendere is a conviction within the meaning of this section. (e) The applicant was previously the holder of an occupational license issued by another state, authorizing the same or similar activities of a license issued under this division; and that license was revoked or suspended for cause and was never reissued, or was suspended for cause, and the terms of suspension have not been fulfilled. (f) The information contained in the application is incorrect. (g) Upon investigation, the business history required by Section 11704 contains incomplete or incorrect information, or reflects substantial business irregularities. (h) A decision of the department to cancel, suspend, or revoke a license has been made and the applicant was a business representative of the business regulated under that license. (i) The applicant has failed to repay the full amount of a claim paid by the Consumer Motor Vehicle Recovery Corporation, plus interest at the rate of 10 percent per annum. The dealer or lessor-retailer’s discharge in bankruptcy shall not relieve the dealer or lessor-retailer from the provisions of this subdivision, except to the extent, if any, mandated by bankruptcy law. (Amended by Stats. 2007, Ch. 437, Sec. 4. Effective January 1, 2008.)
  21. 11703.1.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    If a cause exists to suspend or revoke certain dealer- or transporter-related licenses, it also allows refusal to issue the license.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11703.1. Any of the causes specified in this chapter as a cause to suspend or revoke the license issued to a dealer, manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, or transporter, is cause to refuse to issue a license to a dealer, manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, or transporter. (Amended by Stats. 1990, Ch. 1563, Sec. 40.)
  22. 11703.2.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may refuse to issue a license to certain vehicle-industry applicants if specified unpaid judgments or restitution orders exist against the applicant.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11703.2. The department may refuse to issue a license to a manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer, when the department determines that either of the following apply to the applicant: (a) An outstanding and unsatisfied final judgment rendered against the applicant exists in connection with the purchase, sale, or lease of any vehicle. (b) An outstanding and unsatisfied restitution order issued against the applicant under subdivision (a) of Section 11519.1 of the Government Code exists. (Amended by Stats. 2007, Ch. 93, Sec. 2. Effective January 1, 2008.)
  23. 11703.3.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A person whose license was revoked or whose license application was denied may reapply after at least one year, unless the stated exception allows an earlier reapplication with satisfactory evidence to the department.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11703.3. A person whose license has been revoked or whose application for a license has been denied may reapply for a license after a period of not less than one year has elapsed from the effective date of the decision revoking the license or denying the application; except that if the decision was entered under the authority of subdivision (a), (b), (c), or (g) of Section 11703, or 11703.2, or paragraph (6) of subdivision (a) of Section 11705, a reapplication accompanied by evidence satisfactory to the department that such grounds no longer exist may be made earlier than such one-year period. (Amended by Stats. 1976, Ch. 934.)
  24. 11703.4.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may refuse to issue a dealer license if the applicant has not effectively endorsed an authorization to disclose account information for the dealership.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11703.4. The department may refuse to issue a license to a dealer when it determines that an applicant for a dealer’s license has failed to effectively endorse an authorization for disclosure of an account or accounts relating to the operation of the dealership as provided for in Section 7473 of the Government Code. (Added by Stats. 1976, Ch. 1320.)
  25. 11704.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Applicants for a Section 11701 license must file the department’s application forms and provide required character-related information; the department must investigate complete applications within 120 days, and licensees must report ownership or corporate changes within 10 days.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11704. (a) Every applicant who applies for a license pursuant to Section 11701 shall submit an application to the department on the forms prescribed by the department. Such applicant shall provide the department with information as to the applicant’s character, honesty, integrity, and reputation, as the department may consider necessary. The department, by regulation, shall prescribe what information is required of such an applicant for the purposes of this subdivision. (b) Upon receipt of an application for a license which is accompanied by the appropriate fee, the department shall, within 120 days, make a thorough investigation of the information contained in the application. (c) Every person holding a license issued pursuant to Section 11701 shall notify the department, within 10 days, of any change in the ownership or corporate structure of the licensee. (Repealed and added by Stats. 1977, Ch. 452.)
  26. 11704.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Some dealer-license applicants must pass a written exam and complete required education before a license is issued, and certain dealers must repeat four hours of education every two years to keep or renew the license.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11704.5. (a) Except as provided in subdivision (e), every person who applies for a dealer’s license pursuant to Section 11701 for the purpose of transacting sales of used vehicles on a retail or wholesale basis only shall be required to take and successfully complete a written examination prepared and administered by the department before a license may be issued. The examination shall include, but need not be limited to, all of the following laws and subjects: (1) Division 12 (commencing with Section 24000), relating to equipment of vehicles. (2) Advertising. (3) Odometers. (4) Vehicle licensing and registration. (5) Branch locations. (6) Offsite sales. (7) Unlawful dealer activities. (8) Handling, completion, and disposition of departmental forms. (b) Prior to the first taking of an examination under subdivision (a), every applicant shall successfully complete a preliminary educational program of not less than four hours. The program shall address, but not be limited to, all of the following topics: (1) Chapter 2B (commencing with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code, relating to motor vehicle sales finance. (2) Motor vehicle financing. (3) Truth in lending. (4) Sales and use taxes. (5) Division 12 (commencing with Section 24000), relating to equipment of vehicles. (6) Advertising. (7) Odometers. (8) Vehicle licensing and registration. (9) Branch locations. (10) Offsite sales. (11) Unlawful dealer activities. (12) Air pollution control requirements. (13) Regulations of the Bureau of Automotive Repair. (14) Handling, completion, and disposition of departmental forms. (c) (1) Except as provided in paragraph (2) or (3), every dealer who is required to complete a written examination and an educational program pursuant to subdivisions (a) and (b) and who is thereafter issued a dealer’s license shall successfully complete, every two years after issuance of that license, an educational program of not less than four hours that offers instruction in the subjects listed under subdivision (a) and the topics listed under subdivision (b), in order to maintain or renew that license. (2) A dealer is not required to complete the educational program set forth in paragraph (1) if the educational program is completed by a managerial employee employed by the dealer. (3) Paragraph (1) does not apply to dealers who sell vehicles on a wholesale basis only and who, in a one-year period, deal with less than 50 vehicles that are subject to registration. (d) Instruction described in subdivisions (b) and (c) may be provided by generally accredited educational institutions, private vocational schools, and educational programs and seminars offered by professional societies, organizations, trade associations, and other educational and technical programs that meet the requirements of this section or by the department. (e) This section does not apply to any of the following: (1) An applicant for a new vehicle dealer’s license or any employee of that dealer. (2) A person who holds a valid license as an automobile dismantler, an employee of that dismantler, or an applicant for an automobile dismantler’s license. (3) An applicant for a motorcycle only dealer’s license or any employee of that dealer. (4) An applicant for a trailer only dealer’s license or any employee of that dealer. (5) An applicant for an all-terrain only dealer’s license or any employee of that dealer. (Amended by Stats. 2004, Ch. 836, Sec. 9. Effective January 1, 2005.)
  27. 11704.7.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Applicants who apply to take or retake the Section 11704.5 examination must pay the department a $16 fee.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11704.7. Every person who applies to the department to take or retake the examination required under Section 11704.5 shall pay to the department a fee of sixteen dollars ($16). (Added by Stats. 1996, Ch. 1008, Sec. 4. Effective January 1, 1997.)
  28. 11705.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may suspend or revoke certain dealer and manufacturer-related licenses after notice and hearing if listed misconduct or violations are found.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11705. (a) The department, after notice and hearing, may suspend or revoke the license issued to a dealer, transporter, manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, or distributor branch upon determining that the person to whom the license was issued is not lawfully entitled thereto, or has done any of the following: (1) Filed an application for the license using a false or fictitious name not registered with the proper authorities, or knowingly made a false statement or knowingly concealed a material fact, in the application for the license. (2) Made, or knowingly or negligently permitted, an illegal use of the special plates issued to the licensee. (3) Used a false or fictitious name, knowingly made a false statement, or knowingly concealed a material fact, in an application for the registration of a vehicle, or otherwise committed a fraud in the application. (4) Failed to deliver to a transferee lawfully entitled thereto a properly endorsed certificate of ownership. (5) Knowingly purchased, sold, or otherwise acquired or disposed of a stolen motor vehicle. (6) Failed to provide and maintain a clear physical division between the type of business licensed pursuant to this chapter and any other type of business conducted at the established place of business. (7) Willfully violated Section 3064, 3065, 3074, or 3075 or any rule or regulation adopted pursuant thereto. (8) Violated any provision of Division 3 (commencing with Section 4000) or any rule or regulation adopted pursuant thereto, or subdivision (a) of Section 38200. (9) Violated any provision of Division 4 (commencing with Section 10500) or any rule or regulation adopted pursuant thereto. (10) Violated any provision of Article 1 (commencing with Section 11700) of, or Article 1.1 (commencing with Section 11750) of, Chapter 4 of Division 5 or any rule or regulation adopted pursuant thereto. (11) Violated any provision of Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code or any rule or regulation adopted pursuant thereto. (12) Violated any provision of Chapter 2b (commencing with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code or any rule or regulation adopted pursuant thereto. (13) Submitted a check, draft, or money order to the department for any obligation or fee due the state which was dishonored or refused payment upon presentation. (14) (A) Has caused any person to suffer any loss or damage by reason of any fraud or deceit practiced on that person or fraudulent representations made to that person in the course of the licensed activity. (B) For purposes of this paragraph, “fraud” includes any act or omission which is included within the definition of either “actual fraud” or “constructive fraud” as defined in Sections 1572 and 1573 of the Civil Code, and “deceit” has the same meaning as defined in Section 1710 of the Civil Code. In addition, “fraud” and “deceit” include, but are not limited to, a misrepresentation in any manner, whether intentionally false or due to gross negligence, of a material fact; a promise or representation not made honestly and in good faith; an intentional failure to disclose a material fact; and any act within Section 484 of the Penal Code. (C) For purposes of this paragraph, “person” also includes a governmental entity. (15) Failed to meet the terms and conditions of an agreement entered into pursuant to Section 11707. (16) Violated Section 43151, 43152, or 43153 of, or subdivision (b) of Section 44072.10 of, the Health and Safety Code. (17) Failed to repay a claim paid by the Consumer Motor Vehicle Recovery Corporation as provided in subdivision (i) of Section 11703. (18) As a buy-here-pay-here dealer, violated any provision of Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code or any rule or regulation adopted pursuant to those provisions. (b) Any of the causes specified in this chapter as a cause for refusal to issue a license to a transporter, manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, or dealer applicant is cause to suspend or revoke a license issued to a transporter, manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, or dealer. (c) Except as provided in Section 11707, every hearing provided for in this section shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 2016, Ch. 682, Sec. 3. (AB 287) Effective January 1, 2017.)
  29. 11705.4.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may suspend or revoke certain dealer and manufacturer-related licenses after notice and hearing if specified conditions are met.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11705.4. (a) The department, after notice and hearing, may suspend or revoke the license issued to a dealer, transporter, manufacturer, manufacturer branch, distributor, or distributor branch upon determining that the person to whom the license was issued is not lawfully entitled thereto or has willfully violated the terms and conditions of any warranty responsibilities as set forth in Title 1.7 (commencing with Section 1790) of Part 4 of Division 3 of the Civil Code. (b) Every hearing as provided for in this section shall be pursuant to the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 1977, Ch. 873.)
  30. 11706.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may temporarily suspend certain vehicle-related licenses and special plates for up to 30 days before a hearing if the director finds it is in the public interest.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11706. The department may, pending a hearing, temporarily suspend the license and special plates issued to a manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer, for a period not to exceed 30 days, if the director finds that such action is required in the public interest. In any such case, a hearing shall be held and a decision thereon issued within 30 days after notice of the temporary suspension. Every hearing, as provided for in this section, shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 1983, Ch. 1286, Sec. 32.)
  31. 11707.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The director may settle an accusation with the licensee by a stipulated agreement, and the department must set penalty ranges by regulation.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11707. (a) After the filing of an accusation under this article, the director may enter into a stipulated compromise settlement agreement with the consent of the licensee on terms and conditions mutually agreeable to the director, the respondent licensee, and the accuser without further hearing or appeal. The agreement may include, but is not limited to, a period of probation or monetary penalties, or both. Except as provided in Section 11728, the monetary penalty shall not exceed one thousand dollars ($1,000) for each violation, and it shall be based on the nature of the violation and the effect of the violation on the purposes of this article. (b) A compromise settlement agreement may be entered before, during, or after the hearing, but is valid only if executed and filed pursuant to subdivision (d) before the proposed decision of the hearing officer, if any, is adopted or the case is decided. (c) The department shall adopt, by regulation, a schedule of maximum and minimum amounts of monetary penalties, the payment of which may be included as a term or condition of a compromise settlement agreement entered under subdivision (a). Any monetary penalty included in a compromise settlement agreement shall be within the range of monetary penalties in that schedule. (d) Any compromise settlement agreement entered under this section shall be signed by the director, the respondent licensee, and the accuser, or by their authorized representatives. The director shall file, or cause to be filed, the agreement with the Office of Administrative Hearings, together with the department’s notice of withdrawal of the accusation or statement of issues upon which the action was initiated. (e) If the respondent licensee fails to perform all of the terms and conditions of the compromise settlement agreement, the agreement is void and the department may take any action authorized by law, notwithstanding the agreement, including, but not limited to, refiling the accusation or imposing license sanctions. (Amended by Stats. 1990, Ch. 90, Sec. 3. Effective May 9, 1990.)
  32. 11708.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    If the department refuses to issue a license and special plates, the applicant may request a hearing in writing within 60 days after notice of refusal.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11708. (a) Upon refusal of the department to issue a license and special plates to a manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer, the applicant shall be entitled to demand, in writing, a hearing before the director or his or her representative within 60 days after notice of refusal. (b) The hearing shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 1983, Ch. 1286, Sec. 33.)
  33. 11709.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealers must post their license and location signs at business sites, with minimum sign-size rules. Some dealers are exempt, and dealers or vessel dealers may display vehicles or trailers at fairs or similar exhibits without a branch license if the stated conditions and 30-day limit are met.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11709. (a) A dealer’s established place of business, and other sites or locations as may be operated and maintained by the dealer in conjunction with his or her established place of business, shall have posted, in a place conspicuous to the public in each and every location, the license, or a true and exact copy of the license, issued by the department to the dealer and to each salesperson employed by the dealer and shall have erected or posted thereon signs or devices providing information relating to the dealer’s name and the location and address of the dealer’s established place of business to enable any person doing business with the dealer to identify him or her properly. A sign erected or posted pursuant to this subdivision, on an established place of business, shall have an area of not less than two square feet per side displayed and shall contain lettering of sufficient size to enable the sign to be read from a distance of at least 50 feet. This section shall not apply to a dealer who is a wholesaler involved for profit only in the sale of vehicles between licensed dealers. (b) Notwithstanding Section 11704 and this section, a dealer may display vehicles at a fair, exposition, or similar exhibit without securing a branch license, if no actual sales are made at those events and the display does not exceed 30 days. (c) A vehicle displayed pursuant to subdivision (b) or (e) shall be identified by a sign or device providing information relating to the dealer’s name and the location and address of the dealer’s established place of business. (d) This section shall not be applicable to a dealer who deals only in off-highway vehicles subject to identification, as defined in Section 38012. (e) Notwithstanding Section 11704 and this section, a vessel dealer may display a trailer and may sell a trailer in conjunction with the sale of a vessel at a fair, exposition, or similar exhibit without securing a branch license if the display does not exceed 30 days. (Amended by Stats. 2010, Ch. 483, Sec. 1. (SB 1004) Effective January 1, 2011.)
  34. 11709.1.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealers who sell used vehicles at retail must post a public notice of the buyer’s right to arrange an inspection by an independent third party, at the buyer’s expense and with the dealer’s approval.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11709.1. Every dealer who displays or offers one or more used vehicles for sale at retail shall post a notice not less than 8 inches high and 10 inches wide, in a place conspicuous to the public, which states the following: “The prospective purchaser of a vehicle may, at his or her own expense and with the approval of the dealer, have the vehicle inspected by an independent third party either on or off these premises.” (Added by Stats. 1990, Ch. 1563, Sec. 42.)
  35. 11709.3.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealers must clearly post in their showroom a conspicuous listing of advertised vehicles that meet the section’s conditions.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11709.3. (a) Every dealer shall clearly and conspicuously display in its showroom at its established place of business, in a place that is easily accessible to prospective purchasers, a clear and conspicuous listing of each vehicle that the dealer has advertised for sale if the vehicle meets all of the following requirements: (1) The vehicle is advertised for sale in a newspaper or other publication of general circulation, or in any other advertising medium that is disseminated to the public generally, including, but not limited to, radio, television, or the Internet. (2) The vehicle is advertised at a specific price and is required pursuant to subdivision (a) of Section 11713.1 to be identified in the advertisement by its vehicle identification number or license number. (3) The vehicle has not been sold or leased during the time that the advertised price is valid. (4) The vehicle does not clearly and conspicuously have displayed on or in it the advertised price. (b) The listing required by subdivision (a) may be satisfied by clearly and conspicuously posting in the showroom a complete copy of any print advertisement that includes vehicles currently advertised for sale or by clearly and conspicuously displaying in the showroom a list of currently advertised vehicles described by make, model, model-year, vehicle identification number, or license number, and the advertised price. (Added by Stats. 2001, Ch. 441, Sec. 1. Effective January 1, 2002.)
  36. 11709.4.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer who takes a vehicle in trade with a prior credit or lease balance must pay the balance within 21 days and cannot transfer the vehicle first.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11709.4. (a) When a dealer purchases or obtains a vehicle in trade in a retail sale or lease transaction and the vehicle is subject to a prior credit or lease balance, all of the following apply: (1) If the dealer agreed to pay a specified amount on the prior credit or lease balance owing on the vehicle purchased or obtained in trade, and the agreement to pay the specified amount is contained in a written agreement documenting the transaction, the dealer shall tender the agreed upon amount as provided in the written agreement to the lessor registered in accordance with Section 4453.5, or to the legal owner reflected on the ownership certificate, or to the designee of that lessor or legal owner of the vehicle purchased or obtained in trade within 21 calendar days of purchasing or obtaining the vehicle in trade. (2) If the dealer did not set forth an agreement regarding payment of a prior credit or lease balance owed on the vehicle purchased or obtained in trade, in a written agreement documenting the transaction, the dealer shall tender to the lessor registered in accordance with Section 4453.5, or to the legal owner reflected on the ownership certificate, or to the designee of that lessor or legal owner of the vehicle purchased or obtained in trade, an amount necessary to discharge the prior credit or lease balance owing on the vehicle purchased or obtained in trade within 21 calendar days of purchasing or obtaining the vehicle in trade. (3) The time period specified in paragraph (1) or (2) may be shortened if the dealer and consumer agree, in writing, to a shorter time period. (4) A dealer shall not sell, consign for sale, or transfer any ownership interest in the vehicle purchased or obtained in trade until an amount necessary to discharge the prior credit or lease balance owing on the vehicle has been tendered to the lessor registered in accordance with Section 4453.5, or to the legal owner reflected on the ownership certificate, or to the designee of that lessor or legal owner of the vehicle purchased or obtained in trade. (b) A dealer does not violate this section if the dealer reasonably and in good faith gives notice of rescission of the contract promptly, but no later than 21 days after the date on which the vehicle was purchased or obtained in trade, and the contract is thereafter rescinded on any of the grounds in Section 1689 of the Civil Code. (Amended by Stats. 2010, Ch. 328, Sec. 228. (SB 1330) Effective January 1, 2011.)
  37. 11710.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer and remanufacturer license applicants must file a surety bond and appoint the director for service of process before a license is issued or renewed.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11710. (a) Before any dealer’s or remanufacturer’s license is issued or renewed by the department to any applicant therefor, the applicant shall procure and file with the department a bond executed by an admitted surety insurer, approved as to form by the Attorney General, and conditioned that the applicant shall not practice any fraud or make any fraudulent representation which will cause a monetary loss to a purchaser, seller, financing agency, or governmental agency. (b) A dealer’s bond shall be in the amount of fifty thousand dollars ($50,000), except the bond of a dealer who deals exclusively in motorcycles or all-terrain vehicles shall be in the amount of ten thousand dollars ($10,000). Before the license is renewed by the department, the dealer, other than a dealer who deals exclusively in motorcycles or all-terrain vehicles, shall procure and file a bond in the amount of fifty thousand dollars ($50,000). A remanufacturer bond shall be in the amount of fifty thousand dollars ($50,000). (c) Liability under the bond is to remain at full value. If the amount of liability under the bond is decreased or there is outstanding a final court judgment for which the dealer or remanufacturer and sureties are liable, the dealer’s or remanufacturer’s license shall be automatically suspended. In order to reinstate the license and special plates, the licensee shall either file an additional bond or restore the bond on file to the original amount, or shall terminate the outstanding judgment for which the dealer or remanufacturer and sureties are liable. (d) A dealer’s or remanufacturer’s license, or renewal of the license, shall not be issued to any applicant therefor, unless and until the applicant files with the department a good and sufficient instrument, in writing, in which the applicant appoints the director as the true and lawful agent of the applicant upon whom all process may be served in any action, or actions, which may thereafter be commenced against the applicant, arising out of any claim for damages suffered by any firm, person, association, or corporation, by reason of the violation of the applicant of any of the terms and provisions of this code or any condition of the dealer’s or remanufacturer’s bond. The applicant shall stipulate and agree in the appointment that any process directed to the applicant, when personal service of process upon the applicant cannot be made in this state after due diligence and, in that case, is served upon the director or, in the event of the director’s absence from the office, upon any employee in charge of the office of the director, shall be of the same legal force and effect as if served upon the applicant personally. The applicant shall further stipulate and agree, in writing, that the agency created by the appointment shall continue for and during the period covered by any license that may be issued and so long thereafter as the applicant may be made to answer in damages for a violation of this code or any condition of the bond. The instrument appointing the director as the agent for the applicant for service of process shall be acknowledged by the applicant before a notary public. In any case where the licensee is served with process by service upon the director, one copy of the summons and complaint shall be left with the director or in the director’s office in Sacramento or mailed to the office of the director in Sacramento. A fee of five dollars ($5) shall also be paid to the director at the time of service of the copy of the summons and complaint. Service on the director shall be a sufficient service on the licensee if a notice of service and a copy of the summons and complaint are immediately sent by registered mail by the plaintiff or the plaintiff’s attorney to the licensee. A copy of the summons and complaint shall also be mailed by the plaintiff or the plaintiff’s attorney to the surety on the applicant’s bond at the address of the surety given in the bond, postpaid and registered with request for return receipt. The director shall keep a record of all process so served upon the director, which record shall show the day and hour of service and shall retain the summons and complaint so served on file. Where the licensee is served with process by service upon the director, the licensee shall have and be allowed 30 days from and after the service within which to answer any complaint or other pleading which may be filed in the cause. However, for purposes of venue, where the licensee is served with process by service upon the director, the service is deemed to have been made upon the licensee in the county in which the licensee has or last had an established place of business. (Amended by Stats. 2004, Ch. 836, Sec. 10. Effective January 1, 2005.)
  38. 11710.1.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A wholesale-only dealer who sells fewer than 25 vehicles per year must have a bond amount of $10,000, despite Section 11710(b).

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11710.1. Notwithstanding subdivision (b) of Section 11710, the bond amount of a dealer who sells vehicles on a wholesale basis only, and who sells fewer than 25 vehicles per year, shall be ten thousand dollars ($10,000). (Added by Stats. 2002, Ch. 1110, Sec. 1. Effective January 1, 2003.)
  39. 11710.2.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    If a deposit is posted instead of the bond, the director may return it only at specified times and conditions, and a superior court judge may order an earlier return if satisfied there are no outstanding claims. If the director, department, or state is involved in certain deposit-recovery litigation, reasonable attorney fees and costs come from the deposit.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11710.2. If a deposit is given instead of the bond required by Section 11710 both of the following apply: (a) (1) The director may order the deposit returned at the expiration of any of the following dates: (A) Three years from the date an applicant for a dealer’s license who has operated a business of selling vehicles under a temporary permit has ceased to do business. (B) Three years from the date a licensee has ceased to be licensed, if the director is satisfied that there are no outstanding claims against the deposit. (C) Five years from the date a licensee secured and maintained a dealer bond, pursuant to Section 11710, after posting a deposit, if the director is satisfied that there are no outstanding claims against the deposit. (2) A judge of a superior court may order the return of the deposit prior to the expiration of the dates provided in paragraph (1) upon evidence satisfactory to the judge that there are no outstanding claims against the deposit. (b) If either the director, department, or state is a defendant in any action instituted to recover all or any part of the deposit, or any action is instituted by the director, department, or state to determine those entitled to any part of the deposit, the director, department, or state shall be paid reasonable attorney fees and costs from the deposit. Costs shall include those administrative costs incurred in processing claims against the deposit. (Amended by Stats. 2010, Ch. 483, Sec. 2. (SB 1004) Effective January 1, 2011.)
  40. 11711.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section gives certain injured parties a right to sue a licensed dealer, the dealer’s salesman or representative, and the bond surety for specified fraud, code violations, or nonpayment, subject to stated caps.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11711. (a) If any person (1) shall suffer any loss or damage by reason of any fraud practiced on him or fraudulent representation made to him by a licensed dealer or one of such dealer’s salesmen acting for the dealer, in his behalf, or within the scope of the employment of such salesman and such person has possession of a written instrument furnished by the licensee, containing stipulated provisions and guarantees which the person believes have been violated by the licensee, or (2) if any person shall suffer any loss or damage by reason of the violation by such dealer or salesman of any of the provisions of Division 3 (commencing with Section 4000) of this code, or (3) if any person is not paid for a vehicle sold to and purchased by a licensee, then any such person shall have a right of action against such dealer, his salesman, and the surety upon the dealer’s bond, in an amount not to exceed the value of the vehicle purchased from or sold to the dealer. (b) If the state or any political subdivision thereof shall suffer any loss or damage by reason of any fraud practiced on the state or fraudulent representation made to the state by a licensed dealer, or one of such dealer’s representatives acting for the dealer, in his behalf, or within the scope of employment of such representatives, or shall suffer any loss or damage by reason of the violation of such dealer or representative of any of the provisions of Division 3 (commencing with Section 4000) of this code, or Part 5 (commencing with Section 10701), Division 2 of the Revenue and Taxation Code, the state or any political subdivision thereof, through the department, shall have a right of action against such dealer, his representative, and the surety upon the dealer’s bond in an amount not to exceed the value of the vehicles involved. (c) The failure of a dealer upon demand to pay the fees and penalties determined to be due as provided in Section 4456 hereof is declared to be a violation of Division 3 (commencing with Section 4000) of this code, and Part 5 (commencing with Section 10701), Division 2 of the Revenue and Taxation Code and to constitute loss or damage to the state in the amounts of such fees and penalties determined to be due and not paid. (d) The claims of the state under subdivision (b) shall be satisfied first and entitled to preference over all claims under subdivision (a). (e) The claims of any person under subdivision (a) who is not a licensee shall be satisfied first and entitled to preference over all other claims under subdivision (a). (Amended by Stats. 1972, Ch. 1106.)
  41. 11711.3.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Unlicensed dealers or lessor-retailers may not enforce security interests or sue to recover money, property, or other relief from a vehicle purchaser or lessee when a license was required for the transaction.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11711.3. A person acting as a dealer, who was not licensed as a dealer as required by this article, or a person acting as a lessor-retailer, who was not licensed as a lessor-retailer as required by Chapter 3.5 (commencing with Section 11600), may not enforce any security interest or bring or maintain any action in law or equity to recover any money or property or obtain other relief from the purchaser or lessee of a vehicle in connection with a transaction in which the person was, at the time of the transaction, required to be licensed as a dealer or a lessor-retailer. (Amended by Stats. 2003, Ch. 62, Sec. 304. Effective January 1, 2004.)
  42. 11712.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer must have an established place of business to get a dealer’s license, and must promptly notify the department about certain business changes.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11712. (a) The department shall not issue a dealer’s license to any applicant therefor who has not an established place of business as defined in this code. Should the dealer change the site or location of his established place of business, he or she shall, immediately upon making that change, so notify the department. Should a dealer for any reason whatsoever, cease to be in possession of an established place of business from and on which he or she conducts the business for which he or she is licensed, he or she shall immediately notify the department and, upon demand by the department, shall deliver to the department the dealer’s license, dealer’s special plate or plates, and all report of sale books in his or her possession. (b) Should the dealer change to, or add another franchise for the sale of new vehicles, or cancel or, for any cause whatever, otherwise lose a franchise for the sale of new vehicles, he or she shall immediately so notify the department. (c) Any person licensed under this article who has closed his or her established place of business may be served with process issued pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code by registered mail at that place of business or at the mailing address of record if different from the established place of business, unless the person has notified the department in writing of another address where service may be made. (Amended by Stats. 1988, Ch. 751, Sec. 7.)
  43. 11712.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Licensed dealers may not sell, offer for sale, or display new vehicles unless the required statement or label is attached, depending on the vehicle type.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11712.5. It is unlawful and a violation of this code for a dealer issued a license pursuant to this article to sell, offer for sale, or display any new vehicle, as follows: (a) A new motorcycle unless there is securely attached thereto a statement as required by Section 24014. (b) A new light duty truck with a manufacturer’s gross vehicle weight rating of 8,500 pounds or less unless there is affixed to the light duty truck the label required by Section 24013.5. (Amended by Stats. 1987, Ch. 418, Sec. 1.)
  44. 11713.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A licensed vehicle dealer or similar license holder may not make misleading ads, sell or offer vehicles that are not actually available, or do a range of other listed acts.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713. A holder of a license issued under this article shall not do any of the following: (a) Make or disseminate, or cause to be made or disseminated, before the public in this state, in a newspaper or other publication, or an advertising device, or by public outcry or proclamation, or in any other manner or means whatever, a statement that is untrue or misleading and that is known, or that by the exercise of reasonable care should be known, to be untrue or misleading; or to so make or disseminate, or cause to be so disseminated, a statement as part of a plan or scheme with the intent not to sell a vehicle or service so advertised at the price stated therein, or as so advertised. (b) (1) (A) Advertise or offer for sale or exchange in any manner, a vehicle not actually for sale at the premises of the dealer or available to the dealer directly from the manufacturer or distributor of the vehicle at the time of the advertisement or offer. However, a dealer who has been issued an autobroker’s endorsement to the dealer’s license may advertise the dealer’s service of arranging or negotiating the purchase of a new motor vehicle from a franchised new motor vehicle dealer and may specify the line-makes and models of those new vehicles. Autobrokering service advertisements may not advertise the price or payment terms of a vehicle and shall disclose that the advertiser is an autobroker or auto buying service, and shall clearly and conspicuously state the following: “All new cars arranged for sale are subject to price and availability from the selling franchised new car dealer.” (B) As to printed advertisements, the disclosure statement required by subparagraph (A) shall be printed in not less than 10-point bold type size and shall be textually segregated from the other portions of the printed advertisement. (2) Notwithstanding subparagraph (A), classified advertisements for autobrokering services that measure two column inches or less are exempt from the disclosure statement in subparagraph (A) pertaining to price and availability. (3) Radio advertisements of a duration of less than 11 seconds that do not reference specific line-makes or models of motor vehicles are exempt from the disclosure statement required in subparagraph (A). (c) Fail, within 48 hours, to withdraw in writing an advertisement of a vehicle that has been sold or withdrawn from sale. (d) Advertise or represent a vehicle as a new vehicle if the vehicle is a used vehicle. (e) Engage in the business for which the licensee is licensed without having in force and effect a bond as required by this article. (f) Engage in the business for which the dealer is licensed without at all times maintaining an established place of business as required by this code. (g) Include, as an added cost to the selling price of a vehicle, an amount for licensing or transfer of title of the vehicle, which is not due to the state unless, prior to the sale, that amount has been paid by a dealer to the state in order to avoid penalties that would have accrued because of late payment of the fees. However, a dealer may collect from the second purchaser of a vehicle a prorated fee based upon the number of months remaining in the registration year for that vehicle, if the vehicle had been previously sold by the dealer and the sale was subsequently rescinded and all the fees that were paid, as required by this code and Chapter 2 (commencing with Section 10751) of Part 5 of Division 2 of the Revenue and Taxation Code, were returned to the first purchaser of the vehicle. (h) Employ a person as a salesperson who has not been licensed pursuant to Article 2 (commencing with Section 11800), and whose license is not displayed on the premises of the dealer as required by Section 11812, or willfully fail to notify the department by mail within 10 days of the employment or termination of employment of a salesperson. (i) Deliver, following the sale, a vehicle for operation on California highways, if the vehicle does not meet all of the equipment requirements of Division 12 (commencing with Section 24000). This subdivision does not apply to the sale of a leased vehicle to the lessee if the lessee is in possession of the vehicle immediately prior to the time of the sale and the vehicle is registered in this state. (j) Use, or permit the use of, the special plates assigned to them for any purpose other than as permitted by Section 11715. (k) Advertise or otherwise represent, or knowingly allow to be advertised or represented on behalf of, or at the place of business of, the licenseholder that no downpayment is required in connection with the sale of a vehicle when a downpayment is in fact required and the buyer is advised or induced to finance the downpayment by a loan in addition to any other loan financing the remainder of the purchase price of the vehicle. The terms “no downpayment,” “zero down delivers,” or similar terms shall not be advertised unless the vehicle will be sold to a qualified purchaser without a prior payment of any kind or trade-in. (l) (1) Participate in the sale of a vehicle required to be reported to the Department of Motor Vehicles under Section 5900 or 5901 without making the return and payment of the full tax due and required by Section 6451 of the Revenue and Taxation Code. (2) Participate in the sale of a used vehicle required to be reported to the Department of Motor Vehicles under Section 5900 or 5901 without making the payment of the full tax due as required by Section 6295 of the Revenue and Taxation Code. (3) The amendments to this subdivision made by the act adding this paragraph do not constitute a change in, but are declaratory of, existing law. (m) Permit the use of the dealer’s license, supplies, or books by any other person for the purpose of permitting that person to engage in the purchase or sale of vehicles required to be registered under this code, or permit the use of the dealer’s license, supplies, or books to operate a branch location to be used by any other person, whether or not the licensee has any financial or equitable interest or investment in the vehicles purchased or sold by, or the business of, or branch location used by, the other person. (n) Violate any provision of Article 10 (commencing with Section 28050) of Chapter 5 of Division 12. (o) Sell a previously unregistered vehicle without disclosing in writing to the purchaser the date on which a manufacturer’s or distributor’s warranty commenced. (p) Accept a purchase deposit relative to the sale of a vehicle, unless the vehicle is present at the premises of the dealer or available to the dealer directly from the manufacturer or distributor of the vehicle at the time the dealer accepts the deposit. Purchase deposits accepted by an autobroker when brokering a retail sale shall be governed by Sections 11736 and 11737. (q) Consign for sale to another dealer a new vehicle. (r) Display a vehicle for sale at a location other than an established place of business authorized by the department for that dealer or display a new motor vehicle at the business premises of another dealer registered as an autobroker. This subdivision does not apply to the display of a vehicle pursuant to subdivision (b) of Section 11709 or the demonstration of the qualities of a motor vehicle by way of a test drive. (s) Use a picture in connection with an advertisement of the price of a specific vehicle or class of vehicles, unless the picture is of the year, make, and model being offered for sale. The picture shall not depict a vehicle with optional equipment or a design not actually offered at the advertised price. (t) Advertise for sale a vehicle that was used by the selling licensee in its business as a demonstrator, executive vehicle, service vehicle, rental, loaner, or lease vehicle, unless the advertisement clearly and conspicuously discloses the previous use made by that licensee of the vehicle. An advertisement shall not describe any of those vehicles as “new.” (u) Advertise the prior use or ownership history of a vehicle in an inaccurate manner. (v) (1) Offer to a consumer a subscription service for any motor vehicle feature that utilizes components and hardware already installed on the motor vehicle at the time of purchase or lease and would function after activation without ongoing cost to or support by the dealer, manufacturer, distributor, or a third-party service provider. (2) This subdivision does not apply to navigation system updates, satellite radio, roadside assistance, software-dependent driver assistance or driver automation features, and vehicle-connected services that rely on cellular or other data networks for continued operation. (3) As used in this subdivision, the following terms have the following meanings: (A) “Motor vehicle feature” means any convenience or safety function included on the motor vehicle, such as heated seats or driver assistance, that typically is offered to a consumer as an upgrade at the time of purchase or lease of the motor vehicle. (B) “Subscription service” means a service provided in exchange for a recurring payment, including, but not limited to, a weekly, monthly, or annual payment charged to and made by a consumer, but does not include a consumer’s reoccurring payment made pursuant to a conditional sales contract or lease contract, as defined in Chapters 2b (commencing with Section 2981) and 2d (commencing with Section 2985.7) of Title 14 of Part 4 of Division 3 of the Civil Code. (Amended by Stats. 2023, Ch. 332, Sec. 3. (AB 473) Effective January 1, 2024.)
  45. 11713.1.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer-license holders are restricted in how they advertise and sell vehicles, with detailed disclosure and pricing rules.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.1. It is a violation of this code for the holder of a dealer’s license issued under this article to do any of the following: (a) Advertise a specific vehicle for sale without identifying the vehicle by its model, model-year, and either its license number or that portion of the vehicle identification number that distinguishes the vehicle from all other vehicles of the same make, model, and model-year. Model-year is not required to be advertised for current model-year vehicles. Year models are no longer current when ensuing year models are available for purchase at retail in California. An advertisement that offers for sale a class of new vehicles in a dealer’s inventory, consisting of five or more vehicles, that are all of the same make, model, and model-year is not required to include in the advertisement the vehicle identification numbers or license numbers of those vehicles. (b) Advertise the total price of a vehicle without including all costs to the purchaser at time of sale, except taxes, vehicle registration fees, the California tire fee, as defined in Section 42885 of the Public Resources Code, emission testing charges not exceeding fifty dollars ($50), actual fees charged for certificates pursuant to Section 44060 of the Health and Safety Code, finance charges, and any dealer document processing charge or charge to electronically register or transfer the vehicle. (c) (1) Exclude from an advertisement of a vehicle for sale that there will be added to the advertised total price at the time of sale, charges for sales tax, vehicle registration fees, the California tire fee, the fee charged by the state for the issuance of a certificate of compliance or noncompliance pursuant to a statute, finance charges, a charge to electronically register or transfer the vehicle, and a dealer document processing charge. (2) The obligations imposed by paragraph (1) are satisfied by adding to the advertisement a statement containing no abbreviations and that is worded in substantially the following form: “Plus government fees and taxes, any finance charges, any dealer document processing charge, any electronic filing charge, and any emission testing charge.” (3) For purposes of paragraph (1), “advertisement” means an advertisement in a newspaper, magazine, or direct mail publication that is two or more columns in width or one column in width and more than seven inches in length, or on a Web page of a dealer’s Internet Web site that displays the price of a vehicle offered for sale on the Internet, as that term is defined in paragraph (6) of subdivision (f) of Section 17538 of the Business and Professions Code. (d) Represent the dealer document processing charge, electronic registration or transfer charge, or emission testing charge, as a governmental fee. (e) Fail to sell a vehicle to a person at the advertised total price, exclusive of taxes, vehicle registration fees, the California tire fee, the fee charged by the state for the issuance of a certificate of compliance or noncompliance pursuant to a statute, finance charges, mobilehome escrow fees, the amount of a city, county, or city and county imposed fee or tax for a mobilehome, a dealer document processing charge, an electronic registration or transfer charge, and a charge for emission testing not to exceed fifty dollars ($50) plus the actual fees charged for certificates pursuant to Section 44060 of the Health and Safety Code, while the vehicle remains unsold, unless the advertisement states the advertised total price is good only for a specified time and the time has elapsed. Advertised vehicles shall be sold at or below the advertised total price, with statutorily permitted exclusions, regardless of whether the purchaser has knowledge of the advertised total price. (f) (1) Advertise for sale, sell, or purchase for resale a new vehicle of a line-make for which the dealer does not hold a franchise. (2) This subdivision does not apply to a transaction involving the following: (A) A mobilehome. (B) A commercial coach, as defined in Section 18001.8 of the Health and Safety Code. (C) An off-highway motor vehicle subject to identification as defined in Section 38012. (D) A manufactured home. (E) A new vehicle that will be substantially altered or modified by a converter prior to resale. (F) A commercial vehicle with a gross vehicle weight rating of more than 10,000 pounds. (G) A vehicle purchased for export and exported outside the territorial limits of the United States without being registered with the department. (H) A vehicle acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle, if all of the following apply: (i) The manufacturer or distributor of the vehicle files a bankruptcy petition. (ii) The franchise agreement of the dealer is terminated, canceled, or rejected by the manufacturer or distributor as part of the bankruptcy proceedings and the termination, cancellation, or rejection is not a result of the revocation by the department of the dealer’s license or the dealer’s conviction of a crime. (iii) The vehicle is held in the inventory of the dealer on the date the bankruptcy petition is filed. (iv) The vehicle is sold by the dealer within six months of the date the bankruptcy petition is filed. (3) Subparagraph (H) of paragraph (2) does not entitle a dealer whose franchise agreement has been terminated, canceled, or rejected to continue to perform warranty service repairs or continue to be eligible to offer or receive consumer or dealer incentives offered by the manufacturer or distributor. (g) Sell a park trailer, as specified in Section 18009.3 of the Health and Safety Code, without disclosing in writing to the purchaser that a park trailer is required to be moved by a transporter or a licensed manufacturer or dealer under a permit issued by the Department of Transportation or a local authority with respect to highways under their respective jurisdictions. (h) Advertise free merchandise, gifts, or services provided by a dealer contingent on the purchase of a vehicle. “Free” includes merchandise or services offered for sale at a price less than the seller’s cost of the merchandise or services. (i) (1) Advertise vehicles, and related goods or services, at a specified dealer price, with the intent not to supply reasonably expectable demand, unless the advertisement discloses the number of vehicles in stock at the advertised price. In addition, whether or not there are sufficient vehicles in stock to supply a reasonably expectable demand, when phrases such as “starting at,” “from,” “beginning as low as,” or words of similar import are used in reference to an advertised price, the advertisement shall disclose the number of vehicles available at that advertised price. (2) For purposes of this subdivision, in a newspaper advertisement for a vehicle that is two model-years old or newer, the actual phrase that states the number of vehicles in stock at the advertised price shall be printed in a type size that is at least equal to one-quarter of the type size, and in the same style and color of type, used for the advertised price. However, in no case shall the phrase be printed in less than 8-point type size, and the phrase shall be disclosed immediately above, below, or beside the advertised price without intervening words, pictures, marks, or symbols. (3) The disclosure required by this subdivision is in addition to any other disclosure required by this code or any regulation regarding identifying vehicles advertised for sale. (j) Use “rebate” or similar words, including, but not limited to, “cash back,” in advertising the sale of a vehicle unless the rebate is expressed in a specific dollar amount and is in fact a rebate offered by the vehicle manufacturer or distributor, a finance company affiliated with a vehicle manufacturer or distributor, a regulated utility, or a governmental entity directly to the retail purchaser of the vehicle or to the assignee of the retail purchaser. (k) Require a person to pay a higher price for a vehicle and related goods or services for receiving advertised credit terms than the cash price the same person would have to pay to purchase the same vehicle and related goods or services. For the purpose of this subdivision, “cash price” has the same meaning as defined in subdivision (e) of Section 2981 of the Civil Code. (l) Advertise a guaranteed trade-in allowance. (m) Misrepresent the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction. (n) (1) Use “invoice,” “dealer’s invoice,” “wholesale price,” or similar terms that refer to a dealer’s cost for a vehicle in an advertisement for the sale of a vehicle or advertise that the selling price of a vehicle is above, below, or at either of the following: (A) The manufacturer’s or distributor’s invoice price to a dealer. (B) A dealer’s cost. (2) This subdivision does not apply to either of the following: (A) A communication occurring during face-to-face negotiations for the purchase of a specific vehicle if the prospective purchaser initiates a discussion of the vehicle’s invoice price or the dealer’s cost for that vehicle. (B) A communication between a dealer and a prospective commercial purchaser that is not disseminated to the general public. For purposes of this subparagraph, a “commercial purchaser” means a dealer, lessor, lessor-retailer, manufacturer, remanufacturer, distributor, financial institution, governmental entity, or person who purchases 10 or more vehicles during a year. (o) Violate a law prohibiting bait and switch advertising, including, but not limited to, the guides against bait advertising set forth in Part 238 (commencing with Section 238) of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1988. (p) Make an untrue or misleading statement indicating that a vehicle is equipped with all the factory-installed optional equipment the manufacturer offers, including, but not limited to, a false statement that a vehicle is “fully factory equipped.” (q) Except as provided in Section 24014, affix on a new vehicle a supplemental price sticker containing a price that represents the dealer’s asking price that exceeds the manufacturer’s suggested retail price unless all of the following occur: (1) The supplemental sticker clearly and conspicuously discloses in the largest print appearing on the sticker, other than the print size used for the dealer’s name, that the supplemental sticker price is the dealer’s asking price, or words of similar import, and that it is not the manufacturer’s suggested retail price. (2) The supplemental sticker clearly and conspicuously discloses the manufacturer’s suggested retail price. (3) The supplemental sticker lists each item that is not included in the manufacturer’s suggested retail price, and discloses the additional price of each item. If the supplemental sticker price is greater than the sum of the manufacturer’s suggested retail price and the price of the items added by the dealer, the supplemental sticker price shall set forth that difference and describe it as “added mark-up.” (r) Advertise an underselling claim, including, but not limited to, “we have the lowest prices” or “we will beat any dealer’s price,” unless the dealer has conducted a recent survey showing that the dealer sells its vehicles at lower prices than another licensee in its trade area and maintains records to adequately substantiate the claims. The substantiating records shall be made available to the department upon request. (s) (1) Advertise an incentive offered by the manufacturer or distributor if the dealer is required to contribute to the cost of the incentive as a condition of participating in the incentive program, unless the dealer discloses in a clear and conspicuous manner that dealer participation may affect consumer cost. (2) For purposes of this subdivision, “incentive” means anything of value offered to induce people to purchase a vehicle, including, but not limited to, discounts, savings claims, rebates, below-market finance rates, and free merchandise or services. (t) Display or offer for sale a used vehicle unless there is affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide as required by Part 455 of Title 16 of the Code of Federal Regulations. (u) Fail to disclose in writing to the franchisor of a new motor vehicle dealer the name of the purchaser, date of sale, and the vehicle identification number of each new motor vehicle sold of the line-make of that franchisor, or intentionally submit to that franchisor a false name for the purchaser or false date for the date of sale. (v) Enter into a contract for the retail sale of a motor vehicle unless the contract clearly and conspicuously discloses whether the vehicle is being sold as a new vehicle or a used vehicle, as defined in this code. (w) Use a simulated check, as defined in subdivision (a) of Section 22433 of the Business and Professions Code, in an advertisement for the sale or lease of a vehicle. (x) Fail to disclose, in a clear and conspicuous manner in at least 10-point boldface type on the face of a contract for the retail sale of a new motor vehicle that this transaction is, or is not, subject to a fee received by an autobroker from the selling new motor vehicle dealer, and the name of the autobroker, if applicable. (y) Sell or lease a new motor vehicle after October 1, 2012, unless the dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685. This subdivision does not apply to the sale or lease of a motorcycle or off-highway motor vehicle subject to identification under Section 38010 or a recreational vehicle as defined in Section 18010 of the Health and Safety Code. (z) As used in this section, “make” and “model” have the same meaning as is provided in Section 565.12 of Title 49 of the Code of Federal Regulations. (Amended by Stats. 2018, Ch. 187, Sec. 1. (AB 2227) Effective January 1, 2019.)
  46. 11713.10.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A seller may not sell a low-speed vehicle unless the buyer is told the vehicle’s maximum speed and the potential risks of driving it.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.10. It is unlawful and a violation of this code to sell a low-speed vehicle, as defined in Section 385.5, without disclosing to the buyer the vehicle’s maximum speed and the potential risks of driving a low-speed vehicle. (Added by Stats. 1999, Ch. 140, Sec. 3. Effective January 1, 2000.)
  47. 11713.11.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer-license holders auctioning vehicles to the public must make specified disclosures and cannot charge certain fees or omit required identifying information.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.11. No holder of a dealer’s license shall do any of the following when conducting an auction of vehicles to the public: (a) Advertise that a vehicle will be auctioned to the public unless all of the following information is clearly and conspicuously disclosed in the advertisement: (1) The date or the day of the week of the public auction, or if subdivision (b) applies to the auction, the date of the public auction. (2) The location of the public auction. (3) Whether a fee will be charged to attend the auction and the amount of that fee. (4) The name and dealer number of the auctioning dealer. (5) Whether a buyer’s fee will be charged to a purchaser, in addition to the accepted auction bid price, and, if the fee is a set amount, the dollar amount of that fee. If the buyer’s fee is not a set amount, the advertisement shall state the formula or percentage used to calculate the fee. (b) If vehicles seized by a federal, state, or local public agency or authority are being advertised, advertise that a vehicle will be auctioned to the public unless, in addition to the information required by subdivision (a), the following information is clearly and conspicuously disclosed in the advertisement: (1) A good faith estimate of the number of vehicles to be auctioned at that date. (2) A good faith estimate of the number of vehicles seized by a federal, state, or local public agency or authority to be auctioned at that date. (c) Fail, on the day of auction, to identify each vehicle seized by a federal, state, or local public agency or authority, either in a printed catalog or orally, before bidding begins on the vehicle. (d) Include in the total price of an auctioned vehicle any costs to the purchaser at the completion of the sale, except the accepted auction bid price, taxes, vehicle registration fees, any charge for emission testing, not to exceed fifty dollars ($50), plus the actual fees charged to a consumer for a certificate pursuant to Section 44060 of the Health and Safety Code, any dealer document preparation charge not exceeding forty-five dollars ($45), and any buyer’s fee. (e) Charge a buyer’s fee, unless the dealer conducting the auction delivers to any person permitted to submit bids, and at a time prior to accepting any bids from that person, a disclosure statement required by this subdivision and signed by that person. The disclosure statement, if the buyer’s fee is a set amount, shall disclose the amount of the fee, or if the buyer’s fee is not a set amount, disclose the formula or percentage used to calculate the fee. The disclosure statement shall be on a separate 81/2 x 11 inch sheet of paper. Except for the information set forth in this subdivision, the disclosure statement shall not contain any other text, except as necessary to identify the dealer conducting the auction sale and to disclose the amount, percentage, or formula used to calculate the buyer’s fee, and to provide for the date and the person’s acknowledgment of receipt. The heading shall be printed in no smaller than 24-point bold type and the text of the statement shall be printed in no smaller than 12-point type and shall read substantially as follows: BUYER’S FEE REQUIRED A buyer’s fee is an amount charged by the auctioning dealer for conducting the auction sale. If your bid price is accepted as the winning bid on any vehicle, you will be charged a buyer’s fee in addition to the accepted bid price. The buyer’s fee that will be added to your accepted bid price is $ ________________________________. OR The buyer’s fee that will be added to your accepted bid price will be calculated as follows (insert percentage or other formula for calculating the buyer’s fee): The buyer’s fee is part of the purchase price and is subject to sales tax. Date: ______________ Signature of Bidder ________________________ (f) Fail to comply with or violate this chapter, Title 2.95 (commencing with Section 1812.600) of Part 4 of Division 3 of the Civil Code, Section 2328 of the Commercial Code, or Section 535 of the Penal Code, or any law administered by the State Board of Equalization, relating to the auctioneering business, including, but not limited to, sales and the transfer of title of goods. (g) For purposes of this section, a “buyer’s fee” is any amount that is in addition to the accepted auction bid price, taxes, vehicle registration fees, certificate of compliance or noncompliance fee, or any dealer document preparation charge, which is charged to a purchaser by an auctioning dealer. (Amended by Stats. 1999, Ch. 672, Sec. 2. Effective January 1, 2000.)
  48. 11713.12.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Manufacturers must place the required decal on a specified part of the vehicle, and no person may knowingly remove or alter that decal.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.12. (a) The decal required by subdivision (c) of Section 1793.23 of the Civil Code to be affixed by a manufacturer to a motor vehicle, shall be affixed to the left front doorframe of the vehicle, or, if the vehicle does not have a left front doorframe, it shall be affixed in a location designated by the department. The decal shall specify that title to the motor vehicle has been inscribed with the notation “Lemon Law Buyback” and shall be affixed to the vehicle in a manner prescribed by the department. (b) No person shall knowingly remove or alter any decal affixed to a vehicle pursuant to subdivision (a), whether or not licensed under this code. (Added by Stats. 1995, Ch. 503, Sec. 6. Effective January 1, 1996.)
  49. 11713.13.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section makes it unlawful for certain licensed manufacturers and distributors to pressure dealers or franchisees in specified ways and requires several disclosures, payments, and indemnification duties.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.13. It is unlawful and a violation of this code for any manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code to do, directly or indirectly through an affiliate, any of the following: (a) Prevent, or attempt to prevent, by contract or otherwise, a dealer from acquiring, adding, or maintaining a sales or service operation for another line-make of motor vehicles at the same or expanded facility at which the dealer currently operates a dealership if the dealer complies with any reasonable facilities and capital requirements of the manufacturer or distributor. (b) Require a dealer to establish or maintain exclusive facilities, personnel, or display space if the imposition of the requirement would be unreasonable in light of all existing circumstances, including economic conditions. In any proceeding in which the reasonableness of a facility or capital requirement is an issue, the manufacturer or distributor shall have the burden of proof. (c) Require, by contract or otherwise, a dealer to make a material alteration, expansion, or addition to any dealership facility, unless the required alteration, expansion, or addition is reasonable in light of all existing circumstances, including economic conditions and advancements in vehicular technology. This subdivision does not limit the obligation of a dealer to comply with any applicable health or safety laws. (1) A required facility alteration, expansion, or addition shall not be deemed reasonable if it requires that the dealer purchase goods or services from a specific vendor when goods or services of substantially similar kind, quality, and general design concept are available from another vendor. Notwithstanding the prohibitions in this paragraph, a manufacturer, manufacturer branch, distributor, distributor branch, or affiliate may require the dealer to request approval for the use of alternative goods or services in writing. Approval for these requests shall not be unreasonably withheld, and the request shall be deemed approved if not specifically denied in writing within 20 business days of receipt of the dealer’s written request. This paragraph does not authorize a dealer to impair or eliminate the intellectual property or trademark rights of the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate, or to permit a dealer to erect or maintain signs that do not conform to the intellectual property usage guidelines of the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate. This paragraph shall not apply to a specific good or service if the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate provides the dealer with a lump-sum payment or series of payments toward a substantial portion of the cost of that good or service, if the payment is intended solely to reimburse the dealer for the purchase of the specified good or service. (2) In any proceeding in which a required facility alteration, expansion, or addition is an issue, the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate shall have the burden of proof. (3) (A) A required facility alteration, expansion, or addition shall not be deemed reasonable if the facility has been modified within the last 10 years at a cost of more than two hundred fifty thousand dollars ($250,000), and the modification was required, or was made for the purposes of complying with a franchisor’s brand image program, and was approved by the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate. (B) This paragraph does not apply to a specific facility alteration, expansion, or addition that is necessary to enable the sale or service of zero-emission or near-zero-emission vehicles, as defined in Section 44258 of the Health and Safety Code. (C) This paragraph does not apply to a specific facility alteration, expansion, or addition involving the exercise of the franchisor’s trademark rights that is necessary to erect or maintain signs or to the use of any trademark. (D) This paragraph does not apply to a specific facility alteration, expansion, or addition that is necessary to comply with any applicable health or safety laws. (E) This paragraph does not apply to the installation of specialized equipment that is necessary to service a vehicle offered by a franchisor and available for sale by the franchisee. (F) This paragraph does not apply to voluntary written agreements signed by both parties between a franchisee and a manufacturer, manufacturer branch, distributor, distributor branch, or affiliate. (d) (1) Fail to pay to a dealer, within 90 days of termination, cancellation, or nonrenewal of a franchise, all of the following: (A) The dealer cost, plus any charges made by the manufacturer or distributor for vehicle distribution or delivery and the cost of any dealer-installed original equipment accessories, less any amount invoiced to the vehicle and paid by the manufacturer or distributor to the dealer, for all new and undamaged vehicles with less than 500 miles in the dealer’s inventory that were acquired by the dealer from the manufacturer, distributor, or another new motor vehicle dealer franchised to sell vehicles of the same line-make, in the ordinary course of business, within 18 months of termination, cancellation, or nonrenewal of the franchise. (B) The dealer cost for all unused and undamaged supplies, parts, and accessories listed in the manufacturer’s current parts catalog and in their original packaging, except that sheet metal may be packaged in a comparable substitute for the original package. (C) The fair market value of each undamaged sign owned by the motor vehicle dealer and bearing a common name, trade name, or trademark of the manufacturer or distributor if acquisition of the sign was required or made a condition of participation in an incentive program by the manufacturer or distributor. (D) The fair market value of all special tools, computer systems, and equipment that were required or made a condition of participation in an incentive program by the manufacturer or distributor that are in usable condition, excluding normal wear and tear. (E) The dealer costs of handling, packing, loading, and transporting any items or inventory for repurchase by the manufacturer or distributor. (2) This subdivision does not apply to a franchisor of a dealer of new recreational vehicles, as defined in subdivision (a) of Section 18010 of the Health and Safety Code. (3) This subdivision does not apply to a termination that is implemented as a result of the sale of substantially all of the inventory and fixed assets or stock of a franchised dealership if the dealership continues to operate as a franchisee of the same line-make. (e) (1) (A) Fail to pay to a dealer of new recreational vehicles, as defined in subdivision (a) of Section 18010 of the Health and Safety Code, within 90 days of termination, cancellation, or nonrenewal of a franchise for a recreational vehicle line-make, as defined in Section 3072.5, the dealer cost, plus any charges made by the manufacturer or distributor for vehicle distribution or delivery and the cost of any dealer-installed original equipment accessories, less any amount invoiced to the vehicle and paid by the manufacturer or distributor to the dealer, for a new recreational vehicle when the termination, cancellation, or nonrenewal is initiated by a recreational vehicle manufacturer. This paragraph only applies to new and unused recreational vehicles that do not currently have or have had in the past, material damage, as defined in Section 9990, and that the dealer acquired from the manufacturer, distributor, or another new motor vehicle dealer franchised to sell recreational vehicles of the same line-make in the ordinary course of business within 12 months of the termination, cancellation, or nonrenewal of the franchise. (B) For those recreational vehicles with odometers, paragraph (1) shall apply to only those vehicles that have no more than 1,500 miles on the odometer, in addition to the number of miles incurred while delivering the vehicle from the manufacturer’s facility that produced the vehicle for delivery to the dealer’s retail location. (C) Damaged recreational vehicles shall be repurchased by the manufacturer provided there is an offset in value for damages, except recreational vehicles that have or had material damage, as defined in Section 9990, may be repurchased at the manufacturer’s option provided there is an offset in value for damages. (2) Fail to pay to a dealer of new recreational vehicles, as defined in subdivision (a) of Section 18010 of the Health and Safety Code, within 90 days of termination, cancellation, or nonrenewal of a franchise, all of the following: (A) The dealer cost for all unused and undamaged supplies, parts, and accessories listed in the manufacturer’s current parts catalog and in their original packaging, except that sheet metal may be packaged in a comparable substitute for the original package. (B) The fair market value of each undamaged sign owned by the motor vehicle dealer and bearing a common name, trade name, or trademark of the manufacturer or distributor if acquisition of the sign was required or made a condition of participation in an incentive program by the manufacturer or distributor. (C) The fair market value of all special tools, computer systems, and equipment that were required or made a condition of participation in an incentive program by the manufacturer or distributor that are in usable condition, excluding normal wear and tear. (D) The dealer costs of handling, packing, loading, and transporting any items or inventory for repurchase by the manufacturer or distributor. (f) (1) Fail, upon demand, to indemnify any existing or former franchisee and the franchisee’s successors and assigns from any and all damages sustained and attorney’s fees and other expenses reasonably incurred by the franchisee that result from or relate to any claim made or asserted by a third party against the franchisee to the extent the claim results from any of the following: (A) The condition, characteristics, manufacture, assembly, or design of any vehicle, parts, accessories, tools, or equipment, or the selection or combination of parts or components manufactured or distributed by the manufacturer or distributor. (B) Service systems, procedures, or methods the franchisor required or recommended the franchisee to use if the franchisee properly uses the system, procedure, or method. (C) Improper use or disclosure by a manufacturer or distributor of nonpublic personal information obtained from a franchisee concerning any consumer, customer, or employee of the franchisee. (D) Any act or omission of the manufacturer or distributor for which the franchisee would have a claim for contribution or indemnity under applicable law or under the franchise, irrespective of and without regard to any prior termination or expiration of the franchise. (E) Any act or omission of the franchisee that is the result of the franchisee’s use of a service provided by a digital vendor preselected by a franchisor and the use of that service violates California law. For purposes of this subdivision, a “service provided by a digital vendor” includes any electronic system that manages consumer data or generates consumer notices or documentation. (2) Require a franchisee to indemnify its franchisor, or any third party, for the actions of the franchisee that were properly made in compliance with a franchisor’s policy, program, or requirement. (3) This subdivision does not limit, in any way, the existing rights, remedies, or recourses available to any person who purchases or leases vehicles at retail. (g) (1) Establish or maintain a performance standard, sales objective, or program for measuring a dealer’s sales, service, or customer service performance that may materially affect the dealer, including, but not limited to, the dealer’s right to payment under any incentive or reimbursement program or establishment of working capital requirements, unless both of the following requirements are satisfied: (A) The performance standard, sales objective, or program for measuring dealership sales, service, or customer service performance is reasonable in light of all existing circumstances, including, but not limited to, the following: (i) Demographics in the dealer’s area of responsibility. (ii) Geographical and market characteristics in the dealer’s area of responsibility. (iii) The availability and allocation of vehicles and parts inventory. (iv) Local and statewide economic circumstances. (v) Historical sales, service, and customer service performance of the line-make within the dealer’s area of responsibility, including vehicle brand preferences of consumers in the dealer’s area of responsibility. (B) Within 30 days after a request by the dealer, the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate provides a written summary of the methodology and data used in establishing the performance standard, sales objective, or program for measuring dealership sales or service performance. The summary shall be in detail sufficient to permit the dealer to determine how the standard was established and applied to the dealer. (2) In any proceeding in which the reasonableness of a performance standard, sales objective, or program for measuring dealership sales, service, or customer service performance is an issue, the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate shall have the burden of proof. (3) As used in this subdivision, “area of responsibility” has the same meaning as defined in subdivision (z) of Section 11713.3. (h) Restrict the ability of a dealer to select a digital service of a dealer’s choice that is offered by a vendor of the dealer’s choice, provided that the service offered by the vendor is approved by the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate. Approval for services selected by dealers shall not be unreasonably withheld. For purposes of this subdivision, digital service includes, but is not limited to, internet website and data management services, but does not include warranty repair processes for a vehicle. (i) Restrict, limit, or discourage a franchisee from checking or verifying the applicability of a technical service bulletin or customer service campaign to any vehicle. (j) Implement or modify a vehicle reservation system for the sale or lease of motor vehicles that does not comply with either of the following requirements: (1) Any vehicle reservation system designed, implemented, or controlled by a franchisor that allocates vehicles to franchisees shall use customer dealer selection or other objective criteria to allocate the vehicles. (2) At least 30 days prior to implementing a vehicle reservation system, a franchisor shall make available to its franchisees a description of the reservation program rules and requirements to franchisees through the system, as applicable. Notice of any change to such criteria shall be provided at least 30 days prior to it becoming effective. (k) (1) Implement a program or policy that coerces or requires the franchisee to install direct current fast charging stations, unless all of the following are satisfied: (A) If the program or policy requires public access to the direct current fast charging stations, the franchisor shall reimburse the dealer for one-half of all costs to install and maintain the stations, if the dealer pays the franchisor one-half of the net income generated from the ongoing use of the stations. This subparagraph shall not apply to a manufacturer program or policy that encourages the franchisee to install publicly accessible direct current fast charging stations, if the program or policy reimburses the dealer for no less than one-half of the cost of all direct current fast charging stations subject to the program or policy. (B) The program or policy does not limit the ability of a franchisee to use all available incentives or utility rate plans to minimize total installation cost. (C) The program or policy does not require installation of more than the number and type of electric vehicle charging stations reasonably necessary to conduct service and sales operations. (D) The program or policy must be reasonable in light of supply constraints, time constraints, advancements in vehicular technology, and electric grid integration. (2) For purposes of this subdivision, the term “coerce” shall mean the use of force or threats to persuade, constrain, or compel a franchisee to take a specific action. “Coerce” includes, but is not limited to, threatening to withhold vehicles or parts from a franchisee or charging a franchisee a higher price for vehicles or parts on the basis of the franchisee refusing, declining, or failing to perform a specific behavior. (l) As used in this section, the following terms have the following meanings: (1) “Affiliate” means a person who directly or indirectly through one or more intermediaries, controls, is controlled by, or is under the common direction and control with, another person. “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of any person. (2) “Facility” or “facilities” includes, but is not limited to, premises, places, buildings, or structures. (3) “Vehicle reservation system” means a process that is used to hold open the opportunity for a specified consumer to place an order for the purchase or lease of a new motor vehicle. (Amended by Stats. 2023, Ch. 332, Sec. 5. (AB 473) Effective January 1, 2024.)
  50. 11713.14.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A buyer at a public vehicle auction through a dealer gets the same rights and remedies against that dealer as if the dealer were the seller, and those rights cannot be waived or changed.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.14. (a) Notwithstanding any other provision of law, a person who purchases a vehicle that is sold through a dealer at an auction of vehicles open to the general public shall have the same rights and remedies against the dealer who conducts the auction sale as if that dealer were the owner and seller of the auctioned vehicle. The purchaser’s rights and remedies are in addition to any right or remedy he or she may have against an owner of a vehicle sold at a public auto auction. (b) If any claim or action is filed against a dealer pursuant to subdivision (a) and the vehicle that is the subject of the claim or action was owned by a person other than the dealer at the time of sale by auction, the owner of the vehicle that consigned it to the dealer shall indemnify the dealer for any liability resulting from misrepresentations or other misconduct by the consignor. (c) A purchaser’s rights and remedies under this section may not be waived or modified by an agreement or by a recharacterization of the sales transaction. (Added by Stats. 1999, Ch. 672, Sec. 3. Effective January 1, 2000.)
  51. 11713.15.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealers seeking a temporary branch license for a recreational vehicle show must submit specified authorization and meet location, timing, and participation conditions; show advertising and buyer disclosures also have required content.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.15. (a) (1) Prior to being issued a temporary branch license for selling new recreational vehicles, as defined in Section 18010 of the Health and Safety Code, at a show, a dealer shall submit to the department a manufacturer’s written authorization for the sale specifying the dates of the show, the location of the show, and the makes of those new recreational vehicles being offered for sale. (2) If nine or fewer dealers are participating in the show, a temporary branch license may only be issued to a dealer under this subdivision if the location of the show is 50 miles or less from that dealer’s established place of business or permanent branch location. Each dealer described in this paragraph shall certify in his or her application for a temporary branch license that the show location is 50 miles or less from his or her established place of business or permanent branch location. (3) A temporary branch license may be issued to a dealer for purposes of participating in a show if all of the following conditions exist: (A) The location of the show is 50 miles or more from the dealer’s place of business or that dealer’s branch locations, or both. (B) Ten or more dealers apply for temporary branch licenses for purposes of participating in that show. (C) Not less than 10 days prior to the conduct of the show, the department receives at least 10 applications for temporary branch licenses together at one of the department’s field offices. (b) (1) Any advertising and promotional materials designed to attract the public to attend a show of recreational vehicles where there are nine or fewer dealers participating shall include the business name of each participating dealer and that dealer’s established place of business in a type size that is equivalent to the second largest type used in the advertisement or promotional materials. This information shall be placed at the top of any advertisement or promotional materials. (2) If the recreational vehicles being offered for sale are used, the word “used” shall immediately precede the identification of the make of the vehicle or be immediately adjacent to the depiction of any used vehicles. (3) In addition, the promoters of the show shall cause a sign to be conspicuously displayed at the major, public entrance leading directly to the show, printed in 50-point type, containing the information required in paragraph (1). (c) A recreational vehicle dealer participating in a show for which a temporary branch license is required shall provide each buyer, prior to the sale of any vehicle at the show, a written statement disclosing the identity and the established business location of the dealer that has agreed to render service or warranty work with respect to the vehicle being purchased by the buyer, and if there is no agreement with any dealer to render the service or warranty, to state that fact. (d) Paragraphs (2) and (3) of subdivision (a) and subdivision (b) do not apply to a dealer participating in an annual show sponsored by a national trade association of recreational vehicle manufacturers, if the show is located in a county with a population of 9,000,000 or more persons, or is at a location within 30 miles from the prior approved location of the show, and at least 10 manufacturers are participating in the show. If the dealer is otherwise eligible to participate in the show, the department shall issue a temporary branch license if all the following occur: (1) A national trade association of recreational vehicle manufacturers submits a letter to the department that certifies its status as a national trade association of recreational vehicle manufacturers and specifies the dates and location of the show. (2) Upon receipt of the letter from a national trade association described in paragraph (1) notifying the department of the dates and location of the show, the department provides written acknowledgment to the national trade association submitting the letter. (3) Each dealer participating in the show attaches a copy of the department letter described in paragraph (2) to the application for a temporary branch license submitted to the department. (Amended by Stats. 2018, Ch. 537, Sec. 1. (AB 2330) Effective September 19, 2018.)
  52. 11713.16.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer-license holders may not use misleading vehicle advertising or omit required disclosures.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.16. It is a violation of this code for the holder of any dealer’s license issued under this article to do any of the following: (a) Advertise any used vehicle of the current or prior model-year without expressly disclosing the vehicle as “used,” “previously owned,” or a similar term that indicates that the vehicle is used, as defined in this code. (b) Use the terms “on approved credit” or “on credit approval” in an advertisement for the sale of a vehicle unless those terms are clearly and conspicuously disclosed and unabbreviated. (c) Advertise an amount described by terms such as “unpaid balance” or “balance can be financed” unless the total sale price is clearly and conspicuously disclosed and in close proximity to the advertised balance. (d) Advertise credit terms that fail to comply with the disclosure requirements of Section 226.24 of Title 12 of the Code of Federal Regulations. Advertisements of terms that include escalated payments, balloon payments, or deferred downpayments shall clearly and conspicuously identify those payments as to amounts and time due. (e) Advertise as the total sales price of a vehicle an amount that includes a deduction for a rebate. However, a dealer may advertise a separate amount that includes a deduction for a rebate provided that the advertisement clearly and conspicuously discloses, in close proximity to the amount advertised, the price of the vehicle before the rebate deduction and the amount of the rebate, each so identified. A dealer may not advertise a rebate deduction that conflicts with another advertised rebate deduction. (f) Advertise claims such as “everyone financed,” “no credit rejected,” or similar claims unless the dealer is willing to extend credit to any person under any and all circumstances. (g) Advertise the amount of any downpayment unless it represents the total payment required of a purchaser prior to delivery of the vehicle, including any payment for sales tax or license. Statements such as “$_____ delivers,” “$____ puts you in a new car” are examples of advertised downpayments. (h) Advertise the price of a new vehicle or class of new vehicles unless the vehicle or vehicles have all of the equipment listed as standard by the manufacturer or distributor or the dealer has replaced the standard equipment with equipment of higher value. (i) Fail to clearly and conspicuously disclose in an advertisement for the sale of a vehicle any disclosure required by this code or any qualifying term used in conjunction with advertised credit terms. Unless otherwise provided by statute, the specific size of disclosures or qualifying terms is not prescribed. (Amended by Stats. 2014, Ch. 856, Sec. 3. (AB 1732) Effective January 1, 2015.)
  53. 11713.17.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealers may not deliver certain motor vehicles, and manufacturers or distributors may not sell or distribute certain new vehicles in this state, unless front-license-plate securing hardware is provided or installed, or the buyer signs a written refusal acknowledgment.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.17. (a) Following the retail sale or lease of a motor vehicle for which the department issues two license plates, a dealer may not deliver the motor vehicle unless either of the following occurs: (1) The motor vehicle is equipped with a bracket or other means of securing a front license plate. (2) The dealer obtains a signed written acknowledgment from the person taking delivery of the motor vehicle acknowledging both of the following: (A) The person expressly refused installation of a bracket or other means of securing the front license plate. (B) The person understands that California law requires a license plate to be displayed from and securely fastened to the front of the motor vehicle and that the hardware necessary to securely fasten the front plate is available from the dealer. (b) A manufacturer or distributor may not sell or distribute in this state a new motor vehicle for which the department issues two license plates, unless that motor vehicle is equipped or provided with a bracket or other means of securing the license plates. (Added by Stats. 2004, Ch. 365, Sec. 1. Effective January 1, 2005.)
  54. 11713.18.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer-licensed holders generally may not market or sell a used vehicle as “certified” when specified conditions exist.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.18. (a) It is a violation of this code for the holder of any dealer’s license issued under this article to advertise for sale or sell a used vehicle as “certified” or use any similar descriptive term in the advertisement or the sale of a used vehicle that implies the vehicle has been certified to meet the terms of a used vehicle certification program if any of the following apply: (1) The dealer knows or should have known that the odometer on the vehicle does not indicate actual mileage, has been rolled back or otherwise altered to show fewer miles, or replaced with an odometer showing fewer miles than actually driven. (2) The dealer knows or should have known that the vehicle was reacquired by the vehicle’s manufacturer or a dealer pursuant to state or federal warranty laws. (3) The title to the vehicle has been inscribed with the notation “Lemon Law Buyback,” “manufacturer repurchase,” “salvage,” “junk,” “nonrepairable,” “flood,” or similar title designation required by this state or another state. (4) The vehicle has sustained damage in an impact, fire, or flood, that after repair prior to sale substantially impairs the use or safety of the vehicle. (5) The dealer knows or should have known that the vehicle has sustained frame damage. (6) Prior to sale, the dealer fails to provide the buyer with a completed inspection report indicating all the components inspected. (7) The dealer disclaims any warranties of merchantability on the vehicle. (8) The vehicle is sold “AS IS.” (9) The term “certified” or any similar descriptive term is used in any manner that is untrue or misleading or that would cause any advertisement to be in violation of subdivision (a) of Section 11713 of this code or Section 17200 or 17500 of the Business and Professions Code. (b) A violation of this section is actionable under the Consumers Legal Remedies Act (Title 1.5 (commencing with Section 1750) of Part 4 of Division 3 of the Civil Code), the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code), Section 17500 of the Business and Professions Code, or any other applicable state or federal law. The rights and remedies provided by this section are cumulative and shall not be construed as restricting any right or remedy that is otherwise available. (c) This section does not abrogate or limit any disclosure obligation imposed by any other law. (d) This section does not apply to the advertisement or sale of a used motorcycle or a used off-highway motor vehicle subject to identification under Section 38010. (Added by Stats. 2005, Ch. 128, Sec. 8. Effective January 1, 2006. Operative July 1, 2006, by Sec. 12 of Ch. 128.)
  55. 11713.19.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer-license holders may not add contract charges for goods or services without prior consumer disclosure and consent, and may not disguise those charges by inflating payments or extending maturity.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.19. (a) It is unlawful and a violation of this code for the holder of any dealer’s license issued under this article to do any of the following: (1) Negotiate the terms of a vehicle sale or lease contract and then add charges to the contract for any goods or services without previously disclosing to the consumer the goods and services to be added and obtaining the consumer’s consent. (2) (A) Inflate the amount of an installment payment or down payment or extend the maturity of a sale or lease contract for the purpose of disguising the actual charges for goods or services to be added by the dealer to the contract. (B) For purposes of subparagraph (A), “goods or services” means any type of good or service, including, but not limited to, insurance and service contracts. (b) Subdivision (a) does not apply to the sale or lease of a motorcycle or an off-highway motor vehicle subject to identification under Section 38010. (Added by Stats. 2005, Ch. 128, Sec. 9. Effective January 1, 2006. Operative July 1, 2006, by Sec. 12 of Ch. 128.)
  56. 11713.2.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Licensed manufacturers, branches, distributors, and branches may not coerce or try to coerce dealers in this state into the listed purchases, agreements, advertising activities, or other prejudicial acts.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.2. It shall be unlawful and a violation of this code for any manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code to coerce or attempt to coerce any dealer in this state: (a) To order or accept delivery of any motor vehicle, part or accessory thereof, appliance, equipment or any other commodity not required by law which shall not have been voluntarily ordered by the dealer. (b) To order or accept delivery of any motor vehicle with special features, appliances, accessories or equipment not included in the list price of such motor vehicles as publicly advertised by the manufacturer or distributor. (c) To order for any person any parts, accessories, equipment, machinery, tools, appliances, or any commodity whatsoever. (d) To participate in an advertising campaign or contest, any promotional campaign, promotional materials, training materials, showroom or other display decorations or materials at the expense of the dealer. (e) To enter into any agreement with the manufacturer, manufacturer branch, distributor, or distributor branch, or to do any other act prejudicial to the dealer by threatening to cancel a franchise or any contractual agreement existing between the dealer and manufacturer, manufacturer branch, distributor, or distributor branch. Notice in good faith to any dealer of the dealer’s violation of any terms or provisions of such franchise or contractual agreement shall not constitute a violation of this article. (Added by renumbering Section 11713.1 (as added by Stats. 1973, Ch. 996) by Stats. 1979, Ch. 943.)
  57. 11713.20.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer covered by this section must give the consumer specified credit-score information in a separate document before the vehicle sale or lease.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.20. (a) A dealer that obtains a consumer credit score, as defined in subdivision (b) of Section 1785.15.1 of the Civil Code, from a consumer credit reporting agency, as defined in subdivision (d) of Section 1785.3 of the Civil Code, for use in connection with an application for credit initiated by a consumer for the purchase or lease of a motor vehicle for personal, family, or household use, shall provide, prior to the sale or lease of the vehicle, the following information to the consumer in at least 10-point type on a document separate from the sale or lease contract: (1) Each credit score obtained and used by the dealer. (2) A statement that a consumer report, or a credit report, is a record of the consumer’s credit history and includes information about whether the consumer pays his or her obligations on time and how much the consumer owes to creditors. (3) A statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer’s credit history. (4) A statement that the consumer’s credit score can affect whether the consumer can obtain credit and what the cost of that credit will be. (5) The range of possible credit scores under the model used to generate that credit score. (6) The distribution of credit scores among consumers who are scored under the same scoring model that is used to generate the consumer’s credit score using the same scale as that of the credit score that is provided to the consumer, presented in the form of a bar graph containing a minimum of six bars that illustrates the percentage of consumers with credit scores within the range of scores reflected in each bar, or by other clear and readily understandable graphical means, or a clear and readily understandable statement informing the consumer how his or her credit score compares to the scores of other consumers. Use of a graph or statement obtained from the person providing the credit score that meets the requirements of this paragraph is deemed to comply with this requirement. (7) The date the credit score was created. (8) The name of the consumer reporting agency or other person that provided each credit score obtained and used by the dealer. (9) A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the report. (10) A statement that federal law gives the consumer the right to obtain copies of his or her consumer reports directly from the consumer reporting agencies, including a free report from each of the nationwide consumer reporting agencies once during any 12-month period. (11) Contact information for the centralized source from which consumers may obtain their free annual consumer reports. (12) A statement directing consumers to the Internet Web sites of the Federal Reserve Board and Federal Trade Commission to obtain more information about consumer reports. (b) Appropriate use by a dealer of the model form described in Section 640.5(e)(5) of Title 16 of the Code of Federal Regulations and contained in Title 16 of the Code of Federal Regulations Part B, Appendix B, Model Form B-4, as promulgated on January 15, 2010, is deemed to comply with the requirements of this section. Use of the model form is optional. (c) This section does not apply to the purchase or lease of a motorcycle or an off-highway motor vehicle subject to identification under Section 38010. (d) This section does not limit or restrict any rights or remedies otherwise available under existing law. (Amended by Stats. 2010, Ch. 483, Sec. 3. (SB 1004) Effective January 1, 2011.)
  58. 11713.21.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer selling certain used vehicles at retail to a personal-use buyer must offer a contract cancellation option and follow detailed disclosure, timing, fee, and refund rules.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.21. (a) (1) A dealer shall not sell a used vehicle, as defined in Section 665 and subject to registration under this code, at retail to an individual for personal, family, or household use without offering the buyer a contract cancellation option agreement that allows the buyer to return the vehicle without cause. This section does not apply to a used vehicle having a purchase price of forty thousand dollars ($40,000) or more, a motorcycle, as defined in Section 400, or a recreational vehicle, as defined in Section 18010 of the Health and Safety Code. (2) The purchase price for the contract cancellation option shall not exceed the following: (A) Seventy-five dollars ($75) for a vehicle with a cash price of five thousand dollars ($5,000) or less. (B) One hundred fifty dollars ($150) for a vehicle with a cash price of more than five thousand dollars ($5,000), but not more than ten thousand dollars ($10,000). (C) Two hundred fifty dollars ($250) for a vehicle with a cash price of more than ten thousand dollars ($10,000), but not more than thirty thousand dollars ($30,000). (D) One percent of the purchase price for a vehicle with a cash price of more than thirty thousand dollars ($30,000), but less than forty thousand dollars ($40,000). The term “cash price” as used in this paragraph has the same meaning as described in subparagraph (A) of paragraph (1) of subdivision (a) of Section 2982 of the Civil Code. “Cash price” also excludes registration, transfer, titling, and license fees, the California tire fee, and any charge to electronically register or transfer the vehicle. (b) To comply with subdivision (a), and notwithstanding Section 2981.9 of the Civil Code, a contract cancellation option agreement shall be contained in a document separate from the conditional sales contract or other vehicle purchase agreement and shall contain, at a minimum, the following: (1) The name of the seller and the buyer. (2) A description and the Vehicle Identification Number of the vehicle purchased. (3) A statement specifying the time within which the buyer must exercise the right to cancel the purchase under the contract cancellation option and return the vehicle to the dealer. The dealer shall not specify a time that is earlier than the dealer’s close of business on the second day following the day on which the vehicle was originally delivered to the buyer by the dealer. (4) A statement that clearly and conspicuously specifies the dollar amount of any restocking fee the buyer must pay to the dealer to exercise the right to cancel the purchase under the contract cancellation option. The restocking fee shall not exceed one hundred seventy-five dollars ($175) if the vehicle’s cash price is five thousand dollars ($5,000) or less, three hundred fifty dollars ($350) if the vehicle’s cash price is less than ten thousand dollars ($10,000), and five hundred dollars ($500) if the vehicle cash price is ten thousand dollars ($10,000) or more. The dealer shall apply toward the restocking fee the price paid by the buyer for the contract cancellation option. The price for the purchase of the contract cancellation option is not otherwise subject to setoff or refund. (5) Notwithstanding paragraph (4), when a buyer, who leased the purchased vehicle immediately preceding the dealer’s sale of the vehicle to the buyer, exercises the contract cancellation option, the limit on the amount of a restocking fee required to be paid by the buyer shall be increased. That increased amount shall be the amount the buyer would have been obligated to pay the lessor, at the time of the termination of the lease, for the following charges, as specified in the lease, and as if the buyer had not purchased the contract cancellation option: (A) Excess mileage. (B) Unrepaired damage. (C) Excess wear and tear. (6) A statement specifying the maximum number of miles that the vehicle may be driven after its original delivery by the dealer to the buyer to remain eligible for cancellation under the contract cancellation option. A dealer shall not specify fewer than 250 miles in the contract cancellation option agreement. (7) A statement that the contract cancellation option gives the buyer the right to cancel the purchase and obtain a full refund, minus the purchase price for the contract cancellation option agreement; and that the right to cancel will apply only if, within the time specified in the contract cancellation option agreement, the following are personally delivered to the selling dealer by the buyer: a written notice exercising the right to cancel the purchase signed by the buyer; any restocking fee specified in the contract cancellation option agreement minus the purchase price for the contract cancellation option agreement; the original contract cancellation option agreement and vehicle purchase contract and related documents, if the seller gave those original documents to the buyer; all original vehicle titling and registration documents, if the seller gave those original documents to the buyer; and the vehicle, free of all liens and encumbrances, other than any lien or encumbrance created by or incidental to the conditional sales contract, any loan arranged by the dealer, or any purchase money loan obtained by the buyer from a third party, and in the same condition as when it was delivered by the dealer to the buyer, reasonable wear and tear and any defect or mechanical problem that manifests or becomes evident after delivery that was not caused by the buyer excepted, and which must not have been driven beyond the mileage limit specified in the contract cancellation option agreement. The agreement may also provide that the buyer will execute documents reasonably necessary to effectuate the cancellation and refund and as reasonably required to comply with applicable law. (8) At the bottom of the contract cancellation option agreement, a statement that may be signed by the buyer to indicate the buyer’s election to exercise the right to cancel the purchase under the terms of the contract cancellation option agreement, and the last date and time by which the option to cancel may be exercised, followed by a line for the buyer’s signature. A particular form of statement is not required, but the following statement is sufficient: “By signing below, I elect to exercise my right to cancel the purchase of the vehicle described in this agreement.” The buyer’s delivery of the purchase cancellation agreement to the dealer with the buyer’s signature following this statement shall constitute sufficient written notice exercising the right to cancel the purchase pursuant to paragraph (6). The dealer shall provide the buyer with the statement required by this paragraph in duplicate to enable the buyer to return the signed cancellation notice and retain a copy of the cancellation agreement. (9) If, pursuant to paragraph (5), the limit on the restocking fee is increased by the amount the buyer, who exercises a contract cancellation option would have been obligated to pay the lessor, upon termination of the lease, for charges for excess mileage, unrepaired damage, or excess wear and tear, as specified in the lease, the dealer shall provide the buyer with a notice of the contents of paragraph (5), including a statement regarding the increased restocking fee. (c) (1) No later than the second day following the day on which the buyer exercises the right to cancel the purchase in compliance with the contract cancellation option agreement, the dealer shall cancel the contract and provide the buyer with a full refund, including that portion of the sales tax attributable to amounts excluded pursuant to Section 6012.3 of the Revenue and Taxation Code. (2) If the buyer was not charged for the contract cancellation option agreement, the dealer shall return to the buyer, no later than the day following the day on which the buyer exercises the right to cancel the purchase, any motor vehicle the buyer left with the seller as a downpayment or trade-in. If the dealer has sold or otherwise transferred title to the motor vehicle that was left as a downpayment or trade-in, the full refund described in paragraph (1) shall include the fair market value of the motor vehicle left as a downpayment or trade-in, or its value as stated in the contract or purchase order, whichever is greater. (3) If the buyer was charged for the contract cancellation option agreement, the dealer shall retain any motor vehicle the buyer left with the dealer as a downpayment or trade-in until the buyer exercises the right to cancel or the right to cancel expires. If the buyer exercises the right to cancel the purchase, the dealer shall return to the buyer, no later than the day following the day on which the buyer exercises the right to cancel the purchase, any motor vehicle the buyer left with the seller as a downpayment or trade-in. If the dealer has inadvertently sold or otherwise transferred title to the motor vehicle as the result of a bona fide error, notwithstanding reasonable procedures designed to avoid that error, the inadvertent sale or transfer of title shall not be deemed a violation of this paragraph, and the full refund described in paragraph (1) shall include the retail market value of the motor vehicle left as a downpayment or trade-in, or its value as stated in the contract or purchase order, whichever is greater. (d) If the dealer received a portion of the purchase price by credit card, or other third-party payer on the buyer’s account, the dealer may refund that portion of the purchase price to the credit card issuer or third-party payer for credit to the buyer’s account. (e) Notwithstanding subdivision (a), a dealer is not required to offer a contract cancellation option agreement to an individual who exercised the individual’s right to cancel the purchase of a vehicle from the dealer pursuant to a contract cancellation option agreement during the immediately preceding 30 days. A dealer is not required to give notice to a subsequent buyer of the return of a vehicle pursuant to this section. This subdivision does not abrogate or limit any disclosure obligation imposed by any other law. (f) This section does not affect or alter the legal rights, duties, obligations, or liabilities of the buyer, the dealer, or the dealer’s agents or assigns, that would exist in the absence of a contract cancellation option agreement. The buyer is the owner of a vehicle when the buyer takes delivery of a vehicle until the vehicle is returned to the dealer pursuant to a contract cancellation option agreement, and the existence of a contract cancellation option agreement shall not impose permissive user liability on the dealer, or the dealer’s agents or assigns, under Section 460 or 17150 or otherwise. (g) This section does not affect the ability of a buyer to rescind the contract or revoke acceptance under any other law. (h) This section shall become operative on July 1, 2012. (i) This section shall remain in effect only until October 1, 2026, and as of that date is repealed. (Amended by Stats. 2025, Ch. 354, Sec. 10. (SB 766) Effective January 1, 2026. Repealed as of October 1, 2026, by its own provisions.)
  59. 11713.22.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Manufacturers and distributors covered by this section must provide a written recreational vehicle franchise that meets Section 331.3 when the parties mutually agree to enter into such a franchise.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.22. (a) Upon mutual agreement of the parties to enter into a recreational vehicle franchise, it is unlawful and a violation of this code for a manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code to fail or refuse to provide a recreational vehicle dealer with a written recreational vehicle franchise that complies with the requirements of Section 331.3. (b) Notwithstanding Section 331.3, a recreational vehicle franchise described in this section shall include, but not be limited to, provisions regarding dealership transfer, dealership termination, sales territory, and reimbursement for costs incurred by the dealer for work related to the manufacturer’s warranty for each line-make of recreational vehicle covered by the agreement. (c) This section applies only to a dealer and manufacturer agreement involving recreational vehicles, as defined in subdivision (a) of Section 18010 of the Health and Safety Code, but does not include an agreement with a dealer who deals exclusively in truck campers. (Amended by Stats. 2008, Ch. 743, Sec. 2. Effective January 1, 2009.)
  60. 11713.23.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Certain recreational vehicle manufacturers, distributors, and dealers must have a signed written franchise before selling, shipping, or receiving new recreational vehicles, with limited inventory exceptions.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.23. (a) A recreational vehicle manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code shall not sell a new recreational vehicle in this state to or through a recreational vehicle dealer without having first entered into a written recreational vehicle franchise with that recreational vehicle dealer, that complies with the requirements of Section 331.3 and that has been signed by both parties. (b) A recreational vehicle dealer shall not sell a new recreational vehicle in this state without having first entered into a written recreational vehicle franchise, that complies with the requirements of Section 331.3, with a recreational vehicle manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code, that has been signed by both parties. (c) (1) A recreational vehicle manufacturer, manufacturer branch, distributor, or distributor branch shall not ship a new recreational vehicle to a recreational dealer on or after January 1, 2009, without a recreational vehicle franchise that has been signed by both parties. (2) A recreational vehicle dealer shall not receive a new recreational vehicle from a recreational vehicle manufacturer, manufacturer branch, distributor, or distributor branch on or after January 1, 2009, without a recreational vehicle franchise that has been signed by both parties. (d) Any new recreational vehicle inventory that has been purchased by a recreational vehicle dealer, or shipped by a manufacturer, manufacturer branch, distributor, or distributor branch, before January 1, 2009, may be sold at any time without a recreational vehicle franchise. (e) Following the termination, cancellation, or nonrenewal of a recreational vehicle franchise, any new recreational vehicle inventory that was purchased by the recreational vehicle dealer, or shipped by a manufacturer, manufacturer branch, distributor, or distributor branch, during the period that the written recreational vehicle franchise was in effect, may be sold by that recreational vehicle dealer at any time. (f) This section applies only to a dealer and manufacturer agreement involving recreational vehicles, as defined in subdivision (a) of Section 18010 of the Health and Safety Code, but does not include an agreement with a dealer who deals exclusively in truck campers. (Amended by Stats. 2015, Ch. 407, Sec. 19. (AB 759) Effective January 1, 2016.)
  61. 11713.25.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A computer vendor generally may not access, change, or take information from a dealer’s confidential records or consumer data without the dealer’s express written consent and required safeguards.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.25. (a) A computer vendor shall not do any of the following: (1) Access, modify, or extract information from a confidential dealer computer record or personally identifiable consumer data from a dealer without first obtaining express written consent from the dealer and without maintaining administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of the information. (2) (A) Except as provided in subparagraph (B), require a dealer as a condition of doing or continuing to do business, to give express consent to perform the activities specified in paragraph (1). (B) Express consent may be required as a condition of doing or continuing to do business if the consent is limited to permitting access to personally identifiable consumer data to the extent necessary to do any of the following: (i) To protect against, or prevent actual or potential fraud, unauthorized transactions, claims, or other liability, or to protect against breaches of confidentiality or security of consumer records. (ii) To comply with institutional risk control or to resolve consumer disputes or inquiries. (iii) To comply with federal, state, or local laws, rules, and other applicable legal requirements, including lawful requirements of a law enforcement or governmental agency. (iv) To comply with lawful requirements of a self-regulatory organization or as necessary to perform an investigation on a matter related to public safety. (v) To comply with a properly authorized civil, criminal, or regulatory investigation, or subpoena or summons by federal, state, or local authorities. (vi) To make other use of personally identifiable consumer data with the express written consent of the consumer that has not been revoked by the consumer. (3) Use electronic, contractual, or other means to prevent or interfere with the lawful efforts of a dealer to comply with federal and state data security and privacy laws and to maintain the security, integrity, and confidentiality of confidential dealer computer records, including, but not limited to, the ability of a dealer to monitor specific data accessed from or written to the dealer computer system. Waiver of this subdivision or purported consents authorizing the activities proscribed by the subdivision is void. (b) A dealer shall have the right to prospectively revoke an express consent by providing a 10-day written notice to the computer vendor to whom the consent was provided or on any shorter period of notice agreed to by the computer vendor and the dealer. An agreement that requires a dealer to waive its right to prospectively revoke an express consent is void. (c) For the purposes of this section, the following terms mean as follows: (1) “Confidential dealer computer record” means a computer record residing on the dealer’s computer system that contains, in whole or in part, any personally identifiable consumer data, or the dealer’s financial or other proprietary data. (2) “Computer vendor” means a person, other than a manufacturer, manufacturer branch, distributor, or distributor branch, who in the ordinary course of that person’s business configured, sold, leased, licensed, maintained, or otherwise made available to a dealer, a dealer computer system. (3) “Dealer computer system” means a computer system or computerized application primarily designed for use by and sold to a motor vehicle dealer that, by ownership, lease, license, or otherwise, is used by and in the ordinary course of business of a dealer. (4) “Express consent” means the unrevoked written consent signed by a dealer that specifically describes the data that may be accessed, the means by which it may be accessed, the purpose for which it may be used, and the person or class of persons to whom it may be disclosed. (5) “Personally identifiable consumer data” means information that is any of the following: (A) Information of the type specified in subparagraph (A) of paragraph (6) of subdivision (e) of Section 1798.83 of the Civil Code. (B) Information that is nonpublic personal information as defined in Section 313.3(n)(1) of Title 16 of the Code of Federal Regulations. (C) Information that is nonpublic personal information as defined in subdivision (a) of Section 4052 of the Financial Code. (d) This section does not limit a duty that a dealer may have to safeguard the security and privacy of records maintained by the dealer. (Added by Stats. 2006, Ch. 353, Sec. 2. Effective January 1, 2007.)
  62. 11713.26.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer must get an NMVTIS vehicle history report before offering a used vehicle for retail sale, and must post and sometimes provide a warning disclosure and report copy when the vehicle has junk, salvage, or branded-title history.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.26. (a) A dealer shall not display or offer for sale at retail a used vehicle, as defined in Section 665 and subject to registration under this code, unless the dealer first obtains a NMVTIS vehicle history report from a NMVTIS data provider for the vehicle identification number of the vehicle. (b) If a NMVTIS vehicle history report for a used vehicle indicates that the vehicle is or has been a junk automobile or a salvage automobile or the vehicle has been reported as a junk automobile or a salvage automobile by a junk yard, salvage yard, or insurance carrier pursuant to Section 30504 of Title 49 of the United States Code, or the certificate of title contains a brand, a dealer shall do both of the following: (1) Post the following disclosure on the vehicle while it is displayed for sale at retail in at least 14-point bold black type, except for the title “Warning” which shall be in at least 18-point bold black type, on at least a 4 x 5.5 inch red background in close proximity to the Federal Trade Commission’s Buyer’s Guide: “WARNING According to a vehicle history report issued by the National Motor Vehicle Title Information System (NMVTIS), this vehicle has been reported as a total-loss vehicle by an insurance company, has been reported into NMVTIS by a junk or salvage reporting entity, or has a title brand which may materially affect the value, safety, and/or condition of the vehicle. Because of its history as a junk, salvage, or title-branded vehicle, the manufacturer’s warranty or service contract on this vehicle may be affected. Ask the dealer to see a copy of the NMVTIS vehicle history report. You may independently obtain the report by checking NMVTIS online at www.vehiclehistory.gov.” (2) Provide the retail purchaser with a copy of the NMVTIS vehicle history report upon request prior to sale. (c) Subdivisions (a) and (b) do not apply to a used vehicle for which NMVTIS does not have a record if the dealer attempts to obtain a NMVTIS vehicle history report for the vehicle. (d) As used in this section the following terms have the following meanings: (1) “NMVTIS” means the National Motor Vehicle Title Information System established pursuant to Section 30501 et seq. of Title 49 of the United States Code. (2) “NMVTIS vehicle history report” means a report obtained by an NMVTIS data provider that contains: (A) The date of the report. (B) Any disclaimer required by the operator of NMVTIS. (C) If available from NMVTIS, information establishing the following: (i) Whether the vehicle is titled in a particular state. (ii) Whether the title to the vehicle was branded by a state. (iii) The validity and status of a document purporting to be a certificate of title for the vehicle. (iv) Whether the vehicle is or has been a junk automobile or a salvage automobile. (v) The odometer mileage disclosure required pursuant to Section 32705 of Title 49 of the United States Code for that vehicle on the date the certificate of title for that vehicle was issued and any later mileage information. (vi) Whether the vehicle has been reported as a junk automobile or a salvage automobile pursuant to Section 30504 of Title 49 of the United States Code. (3) “Junk automobile,” “operator,” and “salvage automobile” shall have the same meanings as defined in Section 25.52 of Title 28 of the Code of Federal Regulations. (4) “NMVTIS data provider” means a person authorized by the NMVTIS operator as an access portal provider for NMVTIS. (5) “NMVTIS operator” means the individual or entity authorized or designated as the operator of NMVTIS pursuant to subdivision (b) of Section 30502 of Title 49 of the United States Code, or the office designated by the United States Attorney General, if there is no authorized or designated individual or entity. (e) Nothing in this section shall prohibit a NMVTIS data provider from including, in a NMVTIS vehicle history report containing the information required by paragraph (2) of subdivision (d), additional vehicle history information obtained from resources other than NMVTIS. (f) This section shall not create any legal duty upon the dealer related to the accuracy, errors, or omissions contained in a NMVTIS vehicle history report that is obtained from a NMVTIS data provider or any legal duty to provide information added to NMVTIS after the dealer obtained the NMVTIS vehicle history report pursuant to subdivision (a). (g) (1) In the event that all NMVTIS data providers cease to make NMVTIS vehicle history reports available to the public, this section shall become inoperative. (2) In the event that all NMVTIS data providers cease to make NMVTIS vehicle history reports available to the public, it is the intent of the Legislature that the United States Department of Justice notify the Legislature and the department. (h) This section does not apply to the sale of a recreational vehicle, a motorcycle, or an off-highway motor vehicle subject to identification under Section 38010. (i) This section shall become operative on July 1, 2012. (Added by Stats. 2011, Ch. 329, Sec. 17. (AB 1215) Effective January 1, 2012. Section operative July 1, 2012, by its own provisions.)
  63. 11713.27.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer-license holder may exclude certain fees or charges from a vehicle’s advertised, displayed, or offered price without violating the cited Civil Code provision.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.27. (a) A holder of a dealer’s license issued under this article is not in violation of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code for excluding from the advertised, displayed, or offered price of a vehicle a fee or charge identified in subdivision (b) of Section 11713.1. (b) This section shall become operative on July 1, 2024. (Added by Stats. 2023, Ch. 400, Sec. 10. (SB 478) Effective January 1, 2024. Operative July 1, 2024, by its own provisions.)
  64. 11713.28.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Advertising an MSRP or lease payments based on an MSRP does not violate the cited Civil Code provision.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.28. (a) A motor vehicle manufacturer, or any other person, that advertises a motor vehicle manufacturer’s suggested retail price (MSRP) set by an automobile manufacturer, or lease payments based upon an MSRP, does not, by doing so, violate paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024. (Added by Stats. 2023, Ch. 400, Sec. 11. (SB 478) Effective January 1, 2024. Operative July 1, 2024, by its own provisions.)
  65. 11713.3.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section prohibits manufacturers and distributors from using a range of practices against dealers and franchisees, and it sets notice, consent, transfer, data, and timing rules for franchise transactions.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.3. It is unlawful and a violation of this code for a manufacturer, manufacturer branch, distributor, or distributor branch licensed pursuant to this code to do, directly or indirectly through an affiliate, any of the following: (a) (1) To refuse or fail to deliver in reasonable quantities and within a reasonable time after receipt of an order from a dealer having a franchise for the retail sale of a new vehicle sold or distributed by the manufacturer or distributor, a new vehicle or parts or accessories to new vehicles that are of a model offered by the manufacturer or distributor to other franchisees in this state of the same line-make, if the vehicle, parts, or accessories are publicly advertised as being available for delivery or actually being delivered in this state. This subdivision is not violated, however, if the failure is caused by acts or causes beyond the control of the manufacturer, manufacturer branch, distributor, or distributor branch. (2) To fail to disclose to any franchisee, upon written request, the basis upon which new motor vehicles of the same line-make are allocated or distributed to franchisees in the state and the basis upon which the current allocation or distribution is being made or will be made to the franchisee. (b) To prevent or require, or attempt to prevent or require, by contract or otherwise, a change in the capital structure of a dealership or the means by or through which the dealer finances the operation of the dealership, if the dealer at all times meets reasonable capital standards agreed to by the dealer and the manufacturer or distributor, and if a change in capital structure does not cause a change in the principal management or have the effect of a sale of the franchise without the consent of the manufacturer or distributor. (c) To prevent or require, or attempt to prevent or require, a dealer to change the executive management of a dealership, other than the principal dealership operator or operators, if the franchise was granted to the dealer in reliance upon the personal qualifications of that person. (d) (1) Except as provided in subdivision (t), to prevent or require, or attempt to prevent or require, by contract or otherwise, a dealer, or an officer, partner, or stockholder of a dealership, the sale or transfer of a part of the interest of any of them to another person. A dealer, officer, partner, or stockholder shall not, however, have the right to sell, transfer, or assign the franchise, or a right thereunder, without the consent of the manufacturer or distributor except that the consent shall not be unreasonably withheld. (2) (A) For the transferring franchisee to fail, prior to the sale, transfer, or assignment of a franchisee or the sale, assignment, or transfer of all, or substantially all, of the assets of the franchised business or a controlling interest in the franchised business to another person, to notify the manufacturer or distributor of the franchisee’s decision to sell, transfer, or assign the franchise. The notice shall be in writing and shall include all of the following: (i) The proposed transferee’s name and address. (ii) A copy of all of the agreements relating to the sale, assignment, or transfer of the franchised business or its assets. (iii) The proposed transferee’s application for approval to become the successor franchisee. The application shall include forms and related information generally utilized by the manufacturer or distributor in reviewing prospective franchisees, if those forms are readily made available to existing franchisees. As soon as practicable after receipt of the proposed transferee’s application, the manufacturer or distributor shall notify the franchisee and the proposed transferee of information needed to make the application complete. (B) For the manufacturer or distributor, to fail, on or before 60 days after the receipt of all of the information required pursuant to subparagraph (A), or as extended by a written agreement between the manufacturer or distributor and the franchisee, to notify the franchisee of the approval or the disapproval of the sale, transfer, or assignment of the franchise. The notice shall be in writing and shall be personally served or sent by certified mail, return receipt requested, or by guaranteed overnight delivery service that provides verification of delivery and shall be directed to the franchisee. A proposed sale, assignment, or transfer shall be deemed approved, unless disapproved by the franchisor in the manner provided by this subdivision. If the proposed sale, assignment, or transfer is disapproved, the franchisor shall include in the notice of disapproval a statement setting forth the reasons for the disapproval. (3) In an action in which the manufacturer’s or distributor’s withholding of consent under this subdivision or subdivision (e) is an issue, whether the withholding of consent was unreasonable is a question of fact requiring consideration of all the existing circumstances. (e) To prevent, or attempt to prevent, a dealer from receiving fair and reasonable compensation for the value of the franchised business. There shall not be a transfer or assignment of the dealer’s franchise without the consent of the manufacturer or distributor. The manufacturer or distributor shall not unreasonably withhold consent or condition consent upon the release, assignment, novation, waiver, estoppel, or modification of a claim or defense by the dealer. (f) To obtain money, goods, services, or another benefit from a person with whom the dealer does business, on account of, or in relation to, the transaction between the dealer and that other person, other than for compensation for services rendered, unless the benefit is promptly accounted for, and transmitted to, the dealer. (g) (1) Except as provided in paragraph (3), to obtain from a dealer or enforce against a dealer an agreement, provision, release, assignment, novation, waiver, or estoppel that does any of the following: (A) Modifies or disclaims a duty or obligation of a manufacturer, manufacturer branch, distributor, distributor branch, or representative, or a right or privilege of a dealer, pursuant to Chapter 4 (commencing with Section 11700) of Division 5 or Chapter 6 (commencing with Section 3000) of Division 2. (B) Limits or constrains the right of a dealer to file, pursue, or submit evidence in connection with a protest before the board. (C) Requires a dealer to terminate a franchise. (D) Requires a controversy between a manufacturer, manufacturer branch, distributor, distributor branch, or representative and a dealer to be referred to a person for a binding determination. However, this subparagraph does not prohibit arbitration before an independent arbitrator, provided that whenever a motor vehicle franchise contract provides for the use of arbitration to resolve a controversy arising out of, or relating to, that contract, arbitration may be used to settle the controversy only if, after the controversy arises, all parties to the controversy consent in writing to use arbitration to settle the controversy. For the purpose of this subparagraph, the terms “motor vehicle” and “motor vehicle franchise contract” shall have the same meanings as defined in Section 1226 of Title 15 of the United States Code. If arbitration is elected to settle a dispute under a motor vehicle franchise contract, the arbitrator shall provide the parties to the arbitration with a written explanation of the factual and legal basis for the award. (2) An agreement, provision, release, assignment, novation, waiver, or estoppel prohibited by this subdivision shall be unenforceable and void. (3) This subdivision does not do any of the following: (A) Limit or restrict the terms upon which parties to a protest before the board, civil action, or other proceeding can settle or resolve, or stipulate to evidentiary or procedural matters during the course of, a protest, civil action, or other proceeding. (B) Affect the enforceability of any stipulated order or other order entered by the board. (C) Affect the enforceability of any provision in a contract if the provision is not prohibited under this subdivision or any other law. (D) Affect the enforceability of a provision in any contract entered into on or before December 31, 2011. (E) Prohibit a dealer from waiving its right to file a protest pursuant to Section 3065.1 if the waiver agreement is entered into after a franchisor incentive program claim has been disapproved by the franchisor and the waiver is voluntarily given as part of an agreement to settle that claim. (F) Prohibit a voluntary agreement supported by valuable consideration, other than granting or renewing a franchise, that does both of the following: (i) Provides that a dealer establish or maintain exclusive facilities, personnel, or display space or provides that a dealer make a material alteration, expansion, or addition to a dealership facility. (ii) Contains no waiver or other provision prohibited by subparagraph (A), (B), (C), or (D) of paragraph (1). (G) Prohibit an agreement separate from the franchise agreement that implements a dealer’s election to terminate the franchise if the agreement is conditioned only on a specified time for termination or payment of consideration to the dealer. (H) (i) Prohibit a voluntary waiver agreement, supported by valuable consideration, other than the consideration of renewing a franchise, to waive the right of a dealer to file a protest under Section 3062 for the proposed establishment or relocation of a specific proposed dealership, if the waiver agreement provides all of the following: (I) The approximate address at which the proposed dealership will be located. (II) The planning potential used to establish the proposed dealership’s facility, personnel, and capital requirements. (III) An approximation of projected vehicle and parts sales, and number of vehicles to be serviced at the proposed dealership. (IV) Whether the franchisor or affiliate will hold an ownership interest in the proposed dealership or real property of the proposed dealership, and the approximate percentage of any franchisor or affiliate ownership interest in the proposed dealership. (V) The line-makes to be operated at the proposed dealership. (VI) If known at the time the waiver agreement is executed, the identity of the dealer who will operate the proposed dealership. (VII) The date the waiver agreement is to expire, which may not be more than 30 months after the date of execution of the waiver agreement. (ii) Notwithstanding the provisions of a waiver agreement entered into pursuant to the provisions of this subparagraph, a dealer may file a protest under Section 3062 if any of the information provided pursuant to clause (i) has become materially inaccurate since the waiver agreement was executed. Any determination of the enforceability of a waiver agreement shall be determined by the board and the franchisor shall have the burden of proof. (h) To increase prices of motor vehicles that the dealer had ordered for private retail consumers prior to the dealer’s receipt of the written official price increase notification. A sales contract signed by a private retail consumer is evidence of the order. In the event of manufacturer price reductions, the amount of the reduction received by a dealer shall be passed on to the private retail consumer by the dealer if the retail price was negotiated on the basis of the previous higher price to the dealer. Price reductions apply to all vehicles in the dealer’s inventory that were subject to the price reduction. Price differences applicable to new model or series motor vehicles at the time of the introduction of new models or series shall not be considered a price increase or price decrease. This subdivision does not apply to price changes caused by either of the following: (1) The addition to a motor vehicle of required or optional equipment pursuant to state or federal law. (2) Revaluation of the United States dollar in the case of a foreign-make vehicle. (i) To fail to pay to a dealer, within a reasonable time following receipt of a valid claim by a dealer thereof, a payment agreed to be made by the manufacturer or distributor to the dealer by reason of the fact that a new vehicle of a prior year model is in the dealer’s inventory at the time of introduction of new model vehicles. (j) To deny the widow, widower, or heirs designated by a deceased owner of a dealership the opportunity to participate in the ownership of the dealership or successor dealership under a valid franchise for a reasonable time after the death of the owner. (k) To offer refunds or other types of inducements to a person for the purchase of new motor vehicles of a certain line-make to be sold to the state or a political subdivision of the state without making the same offer to all other dealers in the same line-make within the relevant market area. (l) To modify, replace, enter into, relocate, terminate, or refuse to renew a franchise in violation of Article 4 (commencing with Section 3060) or Article 5 (commencing with Section 3070) of Chapter 6 of Division 2. (m) To employ a person as a representative who has not been licensed pursuant to Article 3 (commencing with Section 11900) of Chapter 4 of Division 5. (n) To deny a dealer the right of free association with another dealer for a lawful purpose. (o) (1) To compete with their franchisees in the sale, lease, or warranty service of new motor vehicles. (2) A manufacturer, branch, or distributor, or an entity that controls or is controlled by a manufacturer, branch, or distributor, shall not, however, be deemed to be competing in the following limited circumstances: (A) Owning or operating a dealership for a temporary period, not to exceed one year at the location of a former dealership of the same line-make that has been out of operation for less than six months. However, after a showing of good cause by a manufacturer, branch, or distributor that it needs additional time to operate a dealership in preparation for sale to a successor independent franchisee, the board may extend the time period. (B) Owning an interest in a dealer as part of a bona fide dealer development program that satisfies all of the following requirements: (i) The sole purpose of the program is to make franchises available to persons lacking capital, training, business experience, or other qualities ordinarily required of prospective franchisees and the dealer development candidate is an individual who is unable to acquire the franchise without assistance of the program. (ii) The dealer development candidate has made a significant investment subject to loss in the franchised business of the dealer. (iii) The program requires the dealer development candidate to manage the day-to-day operations and business affairs of the dealer and to acquire, within a reasonable time and on reasonable terms and conditions, beneficial ownership and control of a majority interest in the dealer and disassociation of any direct or indirect ownership or control by the manufacturer, branch, or distributor. (C) Owning a wholly owned subsidiary corporation of a distributor that sells motor vehicles at retail, if, for at least three years prior to January 1, 1973, the subsidiary corporation has been a wholly owned subsidiary of the distributor and engaged in the sale of vehicles at retail. (3) (A) A manufacturer, branch, and distributor that owns or operates a dealership in the manner described in subparagraph (A) of paragraph (2) shall give written notice to the board, within 10 days, each time it commences or terminates operation of a dealership and each time it acquires, changes, or divests itself of an ownership interest. (B) A manufacturer, branch, and distributor that owns an interest in a dealer in the manner described in subparagraph (B) of paragraph (2) shall give written notice to the board, annually, of the name and location of each dealer in which it has an ownership interest, the name of the bona fide dealer development owner or owners, and the ownership interests of each owner expressed as a percentage. (4) In addition to the exceptions identified in paragraphs (2) and (3), a manufacturer, manufacturer branch, distributor, or distributor branch, or an affiliate thereof, shall not be deemed to be competing with their franchisees in any of the following limited circumstances: (A) When directly providing an update to or repair of motor vehicle software, if the update or repair is provided over-the-air at no cost. (B) When creating a new line of motor vehicles and using new or existing franchisees to sell and service those vehicles. (C) When authorizing a fleet operator or other third party, such as a government entity or a commercial or rental fleet operator, to perform warranty service work on fleet vehicles owned or operated by a fleet owner, operator or other third party, provided that the franchisor does not prohibit or prevent the fleet operator or other third party from obtaining warranty service work from a franchisee of the same line-make. (D) When owning or operating a dealership for the fleet sale or service of autonomous vehicles, provided that the dealership is of a line-make that does not have franchisees and the dealership does not engage in the sale of consumer goods, as defined by Section 1761 of the Civil Code. (E) For the purposes of this paragraph, the following definitions shall apply: (i) “Autonomous vehicles” shall have the same meaning as “autonomous vehicle” in paragraph (2) of subdivision (a) of Section 38750. (ii) “Fleet vehicles” shall mean five or more vehicles under common ownership or operation. (iii) “Fleet sale” shall mean a sale to a person that owns, operates, or maintains fleet vehicles. (5) For the purposes of this subdivision, “warranty” shall have the same meaning as set forth in Section 3065.25. (p) (1) To unfairly discriminate among its franchisees with respect to warranty reimbursement or authority granted to its franchisees to make warranty adjustments with retail customers. (2) (A) To require a franchisee to perform service repair or warranty work on any vehicle model that is not currently available to the franchisee for sale or lease as a new vehicle. (B) This subdivision shall not apply to any vehicle model that is not currently commercially available as a new vehicle. Nothing in this subdivision prohibits a franchisee and a manufacturer, manufacturer branch, distributor, distributor branch, or affiliate from entering into a voluntary written agreement, signed by both parties, to perform service repair or warranty work on any vehicle model provided that the warranty work is reimbursed at the retail labor rate and retail parts rate as established pursuant to Section 3065.2. (3) As used in this subdivision, “warranty” shall have the same meaning as defined in Section 3065.25. (q) To sell vehicles to a person not licensed pursuant to this chapter for resale. (r) To fail to affix an identification number to a park trailer, as described in Section 18009.3 of the Health and Safety Code, that is manufactured on or after January 1, 1987, and that does not clearly identify the unit as a park trailer to the department. The configuration of the identification number shall be approved by the department. (s) To dishonor a warranty, rebate, or other incentive offered to the public or a dealer in connection with the retail sale of a new motor vehicle, based solely upon the fact that an autobroker arranged or negotiated the sale. This subdivision shall not prohibit the disallowance of that rebate or incentive if the purchaser or dealer is ineligible to receive the rebate or incentive pursuant to any other term or condition of a rebate or incentive program. (t) To exercise a right of first refusal or other right requiring a franchisee or an owner of the franchise to sell, transfer, or assign to the franchisor, or to a nominee of the franchisor, all or a material part of the franchised business or of the assets of the franchised business unless all of the following requirements are met: (1) The franchise authorizes the franchisor to exercise a right of first refusal to acquire the franchised business or assets of the franchised business in the event of a proposed sale, transfer, or assignment. (2) The franchisor gives written notice of its exercise of the right of first refusal no later than 45 days after the franchisor receives all of the information required pursuant to subparagraph (A) of paragraph (2) of subdivision (d). (3) The sale, transfer, or assignment being proposed relates to not less than all or substantially all of the assets of the franchised business or to a controlling interest in the franchised business. (4) The proposed transferee is neither a family member of an owner of the franchised business, nor a managerial employee of the franchisee owning 15 percent or more of the franchised business, nor a corporation, partnership, or other legal entity owned by the existing owners of the franchised business. For purposes of this paragraph, a “family member” means the spouse of an owner of the franchised business, the child, grandchild, brother, sister, or parent of an owner, or a spouse of one of those family members. This paragraph does not limit the rights of the franchisor to disapprove a proposed transferee as provided in subdivision (d). (5) Upon the franchisor’s exercise of the right of first refusal, the consideration paid by the franchisor to the franchisee and owners of the franchised business shall equal or exceed all consideration that each of them were to have received under the terms of, or in connection with, the proposed sale, assignment, or transfer, and the franchisor shall comply with all the terms and conditions of the agreement or agreements to sell, transfer, or assign the franchised business. (6) The franchisor shall reimburse the proposed transferee for expenses paid or incurred by the proposed transferee in evaluating, investigating, and negotiating the proposed transfer to the extent those expenses do not exceed the usual, customary, and reasonable fees charged for similar work done in the area in which the franchised business is located. These expenses include, but are not limited to, legal and accounting expenses, and expenses incurred for title reports and environmental or other investigations of real property on which the franchisee’s operations are conducted. The proposed transferee shall provide the franchisor a written itemization of those expenses, and a copy of all nonprivileged reports and studies for which expenses were incurred, if any, within 30 days after the proposed transferee’s receipt of a written request from the franchisor for that accounting. The franchisor shall make payment within 30 days after exercising the right of first refusal. (7) The franchisor does not use, or threaten to use, the exercise of the right of first refusal in bad faith. (u) (1) To unfairly discriminate in favor of a dealership owned or controlled, in whole or in part, by a manufacturer or distributor or an entity that controls or is controlled by the manufacturer or distributor. Unfair discrimination includes, but is not limited to, the following: (A) The furnishing to a franchisee or dealer that is owned or controlled, in whole or in part, by a manufacturer, branch, or distributor of any of the following: (i) A vehicle that is not made available to each franchisee pursuant to a reasonable allocation formula that is applied uniformly, and a part or accessory that is not made available to all franchisees on an equal basis when there is no reasonable allocation formula that is applied uniformly. (ii) A vehicle, part, or accessory that is not made available to each franchisee on comparable delivery terms, including the time of delivery after the placement of an order. Differences in delivery terms due to geographic distances or other factors beyond the control of the manufacturer, branch, or distributor shall not constitute unfair competition. (iii) Information obtained from a franchisee by the manufacturer, branch, or distributor concerning the business affairs or operations of a franchisee in which the manufacturer, branch, or distributor does not have an ownership interest. The information includes, but is not limited to, information contained in financial statements and operating reports, the name, address, or other personal information or buying, leasing, or service behavior of a dealer, customer, and other information that, if provided to a franchisee or dealer owned or controlled by a manufacturer or distributor, would give that franchisee or dealer a competitive advantage. This clause does not apply if the information is provided pursuant to a subpoena or court order, or to aggregated information made available to all franchisees. (iv) Sales or service incentives, discounts, or promotional programs that are not made available to all California franchises of the same line-make on an equal basis. (B) Referring a prospective purchaser or lessee to a dealer in which a manufacturer, branch, or distributor has an ownership interest, unless the prospective purchaser or lessee resides in the area of responsibility assigned to that dealer or the prospective purchaser or lessee requests to be referred to that dealer. (2) This subdivision does not prohibit a franchisor from granting a franchise to prospective franchisees or assisting those franchisees during the course of the franchise relationship as part of a program or programs to make franchises available to persons lacking capital, training, business experience, or other qualifications ordinarily required of prospective franchisees. (v) (1) To access, modify, or extract information from a confidential dealer computer record, as defined in Section 11713.25, without obtaining the prior written consent of the dealer and without maintaining administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of the information. (2) Paragraph (1) does not limit a duty that a dealer may have to safeguard the security and privacy of records maintained by the dealer. (w) (1) To use electronic, contractual, or other means to prevent or interfere with any of the following: (A) The lawful efforts of a dealer to comply with federal and state data security and privacy laws. (B) The ability of a dealer to do either of the following: (i) Ensure that specific data accessed from the dealer’s computer system is within the scope of consent specified in subdivision (v). (ii) Monitor specific data accessed from or written to the dealer’s computer system. (2) Paragraph (1) does not limit a duty that a dealer may have to safeguard the security and privacy of records maintained by the dealer. (x) (1) To unfairly discriminate against a franchisee selling a service contract, debt cancellation agreement, maintenance agreement, or similar product not approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate. For purposes of this subdivision, unfair discrimination includes, but is not limited to, any of the following: (A) Express or implied statements that the dealer is under an obligation to exclusively sell or offer to sell service contracts, debt cancellation agreements, maintenance agreements, or similar products approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate. (B) Express or implied statements that selling or offering to sell service contracts, debt cancellation agreements, maintenance agreements, or similar products not approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate, or the failure to sell or offer to sell service contracts, debt cancellation agreements, maintenance agreements, or similar products approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate will have any negative consequences for the dealer. (C) Measuring a dealer’s performance under a franchise agreement based upon the sale of service contracts, debt cancellation agreements, maintenance agreements, or similar products approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate. (D) Requiring a dealer to actively promote the sale of service contracts, debt cancellation agreements, maintenance agreements, or similar products approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate. (E) Conditioning access to vehicles, parts, or vehicle sales or service incentives upon the sale of service contracts, debt cancellation agreements, maintenance agreements, or similar products approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate. (F) Requiring a dealer to provide a disclosure or notice different from the notice set forth in paragraph (4) of this subdivision for the sale of the service contracts. (2) Unfair discrimination does not include, and nothing shall prohibit a manufacturer from, offering an incentive program to vehicle dealers who voluntarily sell or offer to sell service contracts, debt cancellation agreements, or similar products approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch or affiliate, if the program does not provide vehicle sales or service incentives. (3) This subdivision does not prohibit a manufacturer, manufacturer branch, distributor, or distributor branch from requiring a franchisee that sells a used vehicle as “certified” under a certified used vehicle program established by the manufacturer, manufacturer branch, distributor, or distributor branch to provide a service contract approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, or distributor branch. (4) Unfair discrimination does not include, and nothing shall prohibit a franchisor from requiring a franchisee to provide, the following notice prior to the sale of the service contract if the service contract is not provided or backed by the franchisor and the vehicle is of the franchised line-make: “Service Contract Disclosure The service contract you are purchasing is not provided or backed by the manufacturer of the vehicle you are purchasing. The manufacturer of the vehicle is not responsible for claims or repairs under this service contract. _____________________ Signature of Purchaser” (y) (1) To take or threaten to take any adverse action against a dealer pursuant to an export or sale-for-resale prohibition because the dealer sold or leased a vehicle to a customer who either exported the vehicle to a foreign country or resold the vehicle in violation of the prohibition, unless the export or sale-for-resale prohibition policy was provided to the dealer in writing at least 48 hours before the sale or lease of the vehicle, and the dealer knew or reasonably should have known of the customer’s intent to export or resell the vehicle in violation of the prohibition. If the dealer causes the vehicle to be registered in this or any other state, and collects or causes to be collected any applicable sales or use tax due to this state, a rebuttable presumption is established that the dealer did not have reason to know of the customer’s intent to export or resell the vehicle. In a proceeding in which a challenge to an adverse action is at issue, the manufacturer, manufacturer branch, distributor, or distributor branch shall have the burden of proof by a preponderance of the evidence to show that the vehicle was exported or resold in violation of an export or sale-for-resale prohibition policy, that the prohibition policy was provided to the dealer in writing at least 48 hours prior to the sale or lease, and that the dealer knew or reasonably should have known of the customer’s intent to export the vehicle to a foreign country at the time of the sale or lease. (2) An export or sale-for-resale prohibition policy shall not include a provision that expressly or implicitly requires a dealer to make further inquiries into a customer’s intent, identity, or financial ability to purchase or lease a vehicle based on any of the customer’s characteristics listed or defined in Section 51 of the Civil Code. A policy that is in violation of this paragraph is void and unenforceable. (3) An export or sale-for-resale prohibition policy shall expressly include a provision stating the dealer’s rebuttable presumption if the dealer causes the vehicle to be registered in this or any other state and collects or causes to be collected any applicable sales or use tax. A policy that is in violation of this paragraph is void and unenforceable. (4) For purposes of this subdivision, “adverse action” means any activity that imposes, either expressly or implicitly, a burden, responsibility, or penalty on a dealer, including, but not limited to, nonroutine or nonrandom audits, withholding of incentives, or monetary chargebacks, imposed by the manufacturer, manufacturer branch, distributor, or distributor branch, or through an affiliate. (z) As used in this section, the following terms have the following meanings: (1) “Affiliate” means a person who directly or indirectly through one or more intermediaries, controls, is controlled by, or is under the common direction and control with, another person. “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of any person. (2) “Area of responsibility” means a geographic area specified in a franchise that is used by the franchisor for the purpose of evaluating the franchisee’s performance of its sales and service obligations. (Amended by Stats. 2023, Ch. 332, Sec. 4. (AB 473) Effective January 1, 2024.)
  66. 11713.4.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    If a vehicle purchaser overpays the dealer for licensing or title transfer, the dealer must refund the excess to the purchaser.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.4. If a purchaser of a vehicle pays to the dealer an amount for the licensing or transfer of title of the vehicle, which amount is in excess of the actual fees due for such licensing or transfer, or which amount is in excess of the amount which has been paid, prior to the sale, by the dealer to the state in order to avoid penalties that would have accrued because of late payment of such fees, the dealer shall return such excess amount to the purchaser, whether or not such purchaser requests the return of the excess amount. (Added by renumbering Section 11713.3 by Stats. 1979, Ch. 943.)
  67. 11713.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    License holders covered by this article may not misstate a vehicle’s model year, may not instruct others to change it, and may sell a two-stage housecar only if they notify the buyer and give the approved form; they must also keep a signed copy of that form.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.5. (a) It is unlawful and a violation of this code for the holder of any license issued under this article to display for sale, offer for sale, or sell, a motor vehicle, representing the motor vehicle to be of a year model different from the year model designated at the time of manufacture or first assembly as a completed vehicle. (b) It is unlawful and a violation of this code for the holder of any license issued under this article to directly or indirectly authorize or advise another holder of a license issued under this article to change the year model of a motor vehicle in the inventory of the other holder. (c) It is unlawful and a violation of this code for the holder of any license issued under this article to display for sale, offer for sale, or sell, a housecar which has been manufactured in two or more stages, unless the licensee informs the buyer that the housecar has been so manufactured and the licensee provides the buyer with a form, approved by the department, which sets forth the date of chassis and engine manufacture and the date and model year of the other stages of the vehicle. The licensee shall retain a copy of the form, which shall be signed by the purchaser prior to entering into any sales contract, indicating that the purchaser has received a copy of the form. (d) This section does not apply to the displaying or offering for sale, or selling, of any new motortruck or truck tractor weighing over 10,000 pounds. (e) This section does not apply to a vehicle which has been remanufactured by a licensed remanufacturer. The year model of a remanufactured vehicle will be the year the vehicle was remanufactured. (Amended by Stats. 1983, Ch. 1286, Sec. 36.)
  68. 11713.6.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealer-license holders must disclose certain tire-chain limitations in writing to buyers or lessees of new motor vehicles, and the dealer must obtain a signature and give a copy of the signed disclosure before sale or lease.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.6. (a) It is unlawful and a violation of this code for the holder of any dealer’s license issued under this article to fail to disclose in writing to the buyer or lessee of a new motor vehicle, that the vehicle, as equipped, may not be operated on a highway signed for the requirement of tire chains if the owner’s manual or other material provided by the manufacturer states that the vehicle, as equipped, may not be operated with tire chains. (b) The disclosure required under subdivision (a) shall meet both of the following requirements: (1) The disclosure shall be printed in not less than 14-point boldface type on a single sheet of paper that contains no information other than the disclosure. (2) The disclosure shall include the following language in capital letters: “AS EQUIPPED, THIS VEHICLE MAY NOT BE OPERATED WITH TIRE CHAINS BUT MAY ACCOMMODATE SOME OTHER TYPE OF TIRE TRACTION DEVICE. SEE THE OWNER’S MANUAL FOR DETAILS.” (c) Prior to the sale or lease, the dealer shall present the disclosure statement for the buyer’s or lessee’s signature and then shall provide the buyer or lessee with a copy of the signed disclosure. (Amended by Stats. 1995, Ch. 452, Sec. 2. Effective January 1, 1996.)
  69. 11713.7.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A remanufactured vehicle must be disclosed to the buyer and identified in sales documents, ads, and retail display.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.7. Disclosure to a buyer that a vehicle has been remanufactured is required. Disclosure shall be accomplished by all of the following: (a) Oral notification to the buyer. (b) The statement “THIS VEHICLE HAS BEEN REMANUFACTURED AND CONTAINS USED OR RECONDITIONED PARTS” shall appear in a type size at least the same as the bulk of the text on the purchase order or conditional sales contract signed by the buyer. (c) The statement that the vehicle is remanufactured and contains used or reconditioned parts shall appear in any advertisement pertaining to remanufactured vehicles. (d) Remanufactured vehicles displayed for retail purposes shall be clearly designated as remanufactured. The disclosure statement required in subdivision (b) shall appear on the vehicle or at the location where the vehicles are displayed. (Added by Stats. 1983, Ch. 1286, Sec. 37.)
  70. 11713.8.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A licensed remanufacturer must do the listed reporting, stamping, disclosure, and recordkeeping steps, and must keep certain records for three years.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.8. It is unlawful and a violation of this code for a remanufacturer licensed under this code to fail to do any of the following: (a) Report to the department an existing vehicle identification number when a used frame is utilized. (b) Die stamp the vehicle identification number to the frame of the vehicle when a new vehicle identification number is assigned. (c) Disclose that a vehicle is remanufactured and contains used or reconditioned parts as required by Section 11713.7. (d) Remove the trade name of the original manufacturer from the vehicle, unless the remanufacturer and the original manufacturer are same. (e) Maintain for three years bills of sale or invoices for used parts utilized in a remanufactured vehicle. (f) Maintain for three years proof that the vehicle was reported dismantled, as required by Section 5500 or 11520, when a used frame is utilized in a remanufactured vehicle. (g) Disclose, on the vehicle identification number plate or label, that the vehicle is remanufactured and includes used parts. (h) Disclose to the dealer on a document signed by the dealer that the vehicle is remanufactured and contains used parts. (Added by Stats. 1983, Ch. 1286, Sec. 38.)
  71. 11713.9.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer-license holder must not knowingly offer or display certain new motor vehicles for sale unless they are prominently labeled as required.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11713.9. (a) It is unlawful and a violation of this code for the holder of a dealer’s license to knowingly display for sale or offer for sale any new motor vehicle specified in subdivision (b) with an engine manufactured by a manufacturer that is not the same as the vehicle manufacturer, as defined in Section 9980, unless the vehicle is prominently labeled as specified in Section 9981. (b) This section applies only to new passenger vehicles and to new motortrucks with an unladen weight under 6,000 pounds, except housecars. (Added by Stats. 1984, Ch. 1264, Sec. 2.)
  72. 11714.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section requires the department to issue licenses and special plates in specified circumstances, and it restricts dealers from retail sales in certain locations or when authorized only for wholesale sales.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11714. (a) The department, upon granting a license, shall issue to the applicant a license containing the applicant’s name and address and the general distinguishing number assigned to the applicant. (b) A dealer shall not sell any vehicle at retail at a location that is not posted pursuant to Section 11709. (c) A dealer who is authorized by the department to sell motor vehicles only at wholesale shall not sell any vehicle at retail and shall report every sale to the department as prescribed in subdivision (b) of Section 4456. (d) When the department has issued a license pursuant to subdivision (a), the licensee may apply for and the department shall issue special plates which shall have displayed thereon the general distinguishing number assigned to the applicant. Each plate so issued shall also contain a number or symbol identifying the plate from every other plate bearing a like general distinguishing number. (e) The department shall also furnish books and forms as it may determine necessary. Those books and forms are and shall remain the property of the department and may be taken up at any time for inspection. (f) This section shall become operative January 1, 2019. (Repealed (in Sec. 23) and added by Stats. 2016, Ch. 90, Sec. 24. (AB 516) Effective January 1, 2017. Section operative January 1, 2019, by its own provisions.)
  73. 11715.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Some manufacturers, remanufacturers, distributors, dealers, and transporters may move vehicles on highways without registering them if the required special plates are displayed and the stated conditions are met.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11715. (a) A manufacturer, remanufacturer, distributor, or dealer owning or lawfully possessing any vehicle of a type otherwise required to be registered under this code may operate or move the vehicle upon the highways without registering the vehicle upon condition that the vehicle displays special plates issued to the owner as provided in this chapter, in addition to other license plates or permits already assigned and attached to the vehicle in the manner prescribed in Sections 5200 to 5203, inclusive. A vehicle for sale or lease by a dealer may also be operated or moved upon the highways without registration for a period not to exceed seven days by a prospective buyer or lessee who is test-driving the vehicle for possible purchase or lease, if the vehicle is in compliance with this condition. The vehicle may also be moved or operated for the purpose of towing or transporting by any lawful method other vehicles. (b) A transporter may operate or move any owned or lawfully possessed vehicle of like type by any lawful method upon the highways solely for the purpose of delivery, upon condition that there be displayed upon each vehicle in contact with the highway special license plates issued to the transporter as provided in this chapter, in addition to any license plates or permits already assigned and attached to the vehicle in the manner prescribed in Sections 5200 to 5203, inclusive. The vehicles may be used for the purpose of towing or transporting by any lawful method other vehicles when the towing or transporting vehicle is being delivered for sale or to the owner thereof. (c) This section does not apply to any manufacturer, remanufacturer, transporter, distributor, or dealer operating or moving a vehicle as provided in Section 11716. (d) This section does not apply to work or service vehicles owned by a manufacturer, remanufacturer, transporter, distributor, or dealer. This section does not apply to vehicles owned and leased by dealers, except those vehicles rented or leased to vehicle salespersons in the course of their employment for purposes of display or demonstration, nor to any unregistered vehicles used to transport more than one load of other vehicles for the purpose of sale. (e) This section does not apply to vehicles currently registered in this state that are owned and operated by a licensed dealer when the notice of transfer has been forwarded to the department by the former owner of record pursuant to Section 5900 and when a copy of the notice is displayed as follows: (1) For a motorcycle or motor-driven cycle, the notice is displayed in a conspicuous manner upon the vehicle. (2) For a vehicle other than a motorcycle or motor-driven cycle, the notice is displayed in the lower right-hand corner of the windshield of the vehicle, as specified in paragraph (3) of subdivision (b) of Section 26708. (f) Every owner, upon receipt of a registration card issued for special plates, shall maintain the same or a facsimile copy thereof with the vehicle bearing the special plates. (Amended by Stats. 2001, Ch. 739, Sec. 6.5. Effective January 1, 2002.)
  74. 11716.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Certain vehicle businesses may move otherwise registrable vehicles without registering them or using license/special plates, but only after getting a written permit from the department.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11716. A manufacturer, remanufacturer, transporter, distributor, or dealer, in the course of business, may operate or move any vehicle of a type otherwise required to be registered under this code without registering the vehicle, and without license or special plates attached thereto, from a vessel, railroad depot, or warehouse over the highways to a warehouse or salesroom upon first having obtained a written permit from the department authorizing that operation. (Amended by Stats. 1990, Ch. 1563, Sec. 45.)
  75. 11717.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Occupational licenses and special plates are valid for one year, with renewal allowed on application and payment of the required fees, subject to timing limits and late penalties.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11717. (a) Every occupational license and special plate issued under this article shall be valid for a period of one year from midnight of the last day of the month of issuance. Except as provided in subdivision (c), renewal of the occupational license and special plates for the ensuing year may be obtained by the person to whom the occupational license and special plates were issued upon application to the department and payment of the fee provided in this code. (b) Every application for the renewal of an occupational license and special plates which expire pursuant to this section shall be made by the person to whom issued not more than 90 days prior to the expiration date, and shall be made by presenting the completed application form provided by the department and by payment of the full annual renewal fee for the occupational license and special plates. (c) If the application for renewal of the occupational license and special plates is not made by midnight of the expiration date, the application may be made within 30 days following expiration of the license by paying the annual renewal fee and a penalty fee equal to the amount of the original application fee for each occupational license held. A penalty as specified in Sections 9553 and 9554 shall also be added to each special plate renewed during the 30-day period following expiration of the special plates. (d) In no event may the licensee renew the occupational license or special plates after the expiration of the 30-day period authorized in subdivision (c). (Amended by Stats. 1984, Ch. 499, Sec. 12.)
  76. 11718.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue a probationary license, but only when the code does not require refusal, and it can attach conditions to how the license is used.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11718. Except where the provisions of this code require the refusal to issue a license, the department may issue a probationary license subject to conditions to be observed by the licensee in the exercise of the privilege granted. The conditions to be attached to the exercise of the privilege shall not appear on the face of the license but shall be such as may, in the judgment of the department, be in the public interest and suitable to the qualifications of the applicant as disclosed by the application and investigation by the department of the information contained therein. (Amended by Stats. 1971, Ch. 1214.)
  77. 11719.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue a temporary permit to qualifying applicants for certain vehicle licenses and special plates, allow operations for up to 120 days, and cancel the permit if the application is incorrect, incomplete, or issued in error.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11719. Pending the satisfaction of the department that the applicant has met the requirements under this article, it may issue a temporary permit to any person applying for a manufacturer's, manufacturer’s branch, remanufacturer's, remanufacturer’s branch, distributor's, distributor’s branch, transporter's, or dealer’s license and special plates. The temporary permit shall permit the operation by the manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer for a period not to exceed 120 days while the department is completing its investigation and determination of all facts relative to the qualifications of the applicant to the license and special plates. The department may cancel the temporary permit when it has determined, or has reasonable cause to believe, that the application is incorrect or incomplete or the temporary permit was issued in error. The temporary permit is invalid when canceled or when the applicant’s license has been issued or refused. (Amended by Stats. 1983, Ch. 1286, Sec. 41.)
  78. 11720.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue a temporary certificate of convenience after the death of a holder of valid special plates and a license, and may also restrict or condition the license.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11720. The department may issue a certificate of convenience to the executor, executrix, administrator or administratrix of the estate of a deceased holder of validly outstanding special plates and license issued under this article, or if no executor, executrix, administrator or administratrix has been appointed, and until a certified copy of an order making such appointment is filed with the department, to the surviving spouse or other heir otherwise entitled to conduct the business of the deceased, permitting such person to exercise the privileges granted by such special plates and license for a period of one year from and after the date of death and necessary one-year renewals thereafter, pending, but not later than, disposal of the business and qualification of the vendee of the business or such surviving spouse, heir or other persons for such special plates and license under the provisions of this article. The department may restrict or condition the license and attach to the exercise of the privileges thereunder such terms and conditions as in its judgment the protection of the public requires. (Amended by Stats. 1976, Ch. 1171.)
  79. 11721.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Special plates and licenses are automatically canceled if specified business, bond, licensee, corporate-status, or tax-permit events happen.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11721. The special plates and licenses provided for in this article shall be automatically canceled upon the happening of any of the following: (a) The abandonment of the established place of business of the dealer or the change thereof without notice to the department as provided in Section 11712. (b) The failure of the licensee to maintain an adequate bond or to procure and file another bond as provided in Section 11710 prior to the effective date of the termination by the surety of any existing bond. (c) The voluntary or involuntary surrender for any cause by the licensee of the special plates and license, except that the surrender of the special plates and license, the cessation of business by the licensee, or the suspension or revocation of the corporate status of the licensee, does not preclude the filing of an accusation for revocation or suspension of the surrendered license as provided in Section 11705, does not affect the department’s decision to suspend or revoke the license. The department’s determination to suspend or revoke the license may be considered in issuing or refusing to issue any subsequent license authorized by this division to that licensee or to a business representative of that prior licensee. (d) Notification to the department that the person designated as licensee has changed, except that the special plates issued to the original licensee may be transferred and the newly designated licensee as transferee shall succeed to the privileges evidenced by the plates until their expiration. (e) The suspension or revocation of the corporate status of the licensee. (f) The suspension, revocation, or cancellation of the seller’s permit of the licensee by the California Department of Tax and Fee Administration pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. (Amended by Stats. 2022, Ch. 295, Sec. 10. (AB 2956) Effective January 1, 2023.)
  80. 11722.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Claims by a financing agency on a dealer’s bond are limited by other claimants’ priority, but the agency can get the same bond protection as under Section 11711 if it was defrauded by a licensee.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11722. Claims, against the surety upon a dealer’s bond, of a financing agency that has loaned money to a licensee or assignee thereof shall be allowed only to the extent that the claims of any other person or entity with respect to the bond under Section 11711 shall be satisfied first and entitled to preference over the claims of the financing agency with respect to the bond ; provided, however, that as to any conditional sales contract as defined in Section 2981 of the Civil Code, acquired by way of purchase or pledge, a financing agency shall be entitled to protection under the bond with the same preference set forth under Section 11711 if the financing agency is defrauded by a licensee. (Amended by Stats. 2002, Ch. 303, Sec. 2. Effective January 1, 2003.)
  81. 11723.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The board may require license applicants and renewals to pay fees to the department, and may impose an additional late fee in certain late-renewal cases.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11723. The board may require that fees shall be paid to the department for the issuance or renewal of a license to do business as a new motor vehicle dealer, dealer branch, manufacturer, manufacturer branch, distributor, distributor branch, or representative. The fees shall be to reimburse the department for costs incurred in licensing those dealers, manufacturers, distributors, branches, and representatives and for related administrative costs incurred on behalf of the board. The board may also require that an additional fee be paid to the department when the licensee has failed to pay the fee authorized by Section 3016 prior to the expiration of its occupational license and special plates and the licensee utilizes the 30-day late renewal period authorized by subdivision (c) of Section 11717. This section shall not apply to dealers, manufacturers, distributors, or representatives of vehicles not subject to registration under this code, except dealers, manufacturers, manufacturer branches, distributors, distributor branches, or representatives of, off-highway motorcycles, as defined in Section 436, all-terrain vehicles, as defined in Section 111, and trailers subject to identification pursuant to Section 5014.1. (Amended by Stats. 2004, Ch. 836, Sec. 11. Effective January 1, 2005.)
  82. 11724.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer or the dealer’s agent who has received a notice under Section 7507.6 must not make a later assignment to skip trace, locate, or repossess a vehicle unless the assignee is told the notice information at the same time and in the same way the assignment is given.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11724. A dealer, or the agent of a dealer, who has received a notice pursuant to Section 7507.6 of the Business and Professions Code, shall not make a subsequent assignment to skip trace, locate, or repossess a vehicle without simultaneously, and in the same manner by which the assignment is given, advising the assignee of the assignment of the information contained in the notice. As used in this section, “assignment” has the same meaning set forth in Section 7500.1 of the Business and Professions Code. (Added by Stats. 2007, Ch. 192, Sec. 9. Effective September 7, 2007.)
  83. 11725.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    You must remove and hand in license plates before driving or transporting a vehicle out of state to register or sell it abroad; a permit may be available to drive the unplated vehicle to the foreign jurisdiction.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11725. (a) No person shall transport or drive any motor vehicle from this state outside of the United States with the intent to register or sell such vehicle in a foreign jurisdiction, without first removing the license plates and delivering them to the department. Such person may obtain a permit from the department authorizing the operation of the unlicensed motor vehicle on the public highways of this state in order to reach such foreign jurisdiction. Failure to deliver the license plates as required by this subdivision shall be a misdemeanor. (b) No holder of any license, or any temporary permit for such license issued under this division, shall deliver any vehicle following sale without first removing all license plates from such vehicle when it is known by the licensee that the vehicle is to be exported to a foreign jurisdiction outside of the United States. (Amended by Stats. 1976, Ch. 934.)
  84. 11726.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A licensee who suffers pecuniary loss because another licensee willfully failed to comply with specified licensing rules may recover damages and reasonable attorney fees, and may also seek injunctive relief in court.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11726. Any licensee suffering pecuniary loss because of any willful failure by any other licensee to comply with any provision of Article 1 (commencing with Section 11700) or 3 (commencing with Section 11900) of Chapter 4 of Division 5 or with any regulation adopted by the department or any rule adopted or decision rendered by the board under authority vested in them may recover damages and reasonable attorney fees therefor in any court of competent jurisdiction. Any such licensee may also have appropriate injunctive relief in any such court. (Amended by Stats. 2019, Ch. 796, Sec. 20. (AB 179) Effective January 1, 2020.)
  85. 11727.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A license revocation or suspension for certain vehicle-industry license holders may be limited to specific areas, business aspects, or dealers.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11727. The revocation or suspension of a license of a manufacturer, manufacturer branch, distributor, distributor branch, or representative may be limited to one or more municipalities or counties or any other defined area, or may be revoked or suspended in a defined area only as to certain aspects of its business, or as to a specified dealer or dealers. (Added by Stats. 1973, Ch. 996.)
  86. 11728.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may impose a penalty and short license suspension on a dealer who violates Section 11713(r), within compromise settlement agreements under Sections 11707 or 11808.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11728. As part of a compromise settlement agreement entered into pursuant to Section 11707 or 11808.5, the department may assess a monetary penalty of not more than two thousand five hundred dollars ($2,500) per violation and impose a license suspension of not more than 30 days for any dealer who violates subdivision (r) of Section 11713. The extent of the penalties shall be based on the nature of the violation and effect of the violation on the purposes of this article. Except for the penalty limits provided for in Sections 11707 and 11808.5, all the provisions governing compromise settlement agreements for dealers, salespersons, and wholesalers apply to this section, and Section 11415.60 of the Government Code does not apply. (Amended by Stats. 1995, Ch. 938, Sec. 90. Effective January 1, 1996. Operative July 1, 1997, by Sec. 98 of Ch. 938.)
  87. 11729.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Dealers in certain consignments must sign the required consignment agreement, and some retail auction sales for fleet owners get a shorter agreement form.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11729. (a) Except as provided in subdivision (b), any dealer engaging in a consignment with an owner not licensed as a dealer, manufacturer, manufacturer branch, distributor, or a distributor branch licensed under this code, and the consignment is not otherwise prohibited by this code, shall execute a consignment agreement as prescribed by Section 11730. The failure of a dealer, when required under this section, to complete and comply with the terms of the prescribed consignment agreement for any vehicle which the dealer agrees to accept on consignment, or to pay the agreed amount to the consignor or his or her designee within 20 days after the date of sale of the vehicle, is cause for suspending or revoking the license of the dealer under paragraph (10) of subdivision (a) of Section 11705. (b) (1) A dealer conducting retail auction sales on behalf of a fleet owner shall execute a consignment agreement applicable to all vehicles consigned for sale during the term of the agreement which contains, at a minimum, substantially all of the terms, phrases, conditions, and disclosures required by Section 11730, except the following are not required: (A) The description of a specific vehicle by year, make, identification number, license, state, or mileage. (B) The information contained in paragraph (4) of subdivision (b) of Section 11730. (2) If mutually agreeable, in lieu of the requirements of paragraph (7) of subdivision (b) of Section 11730, the consignor may provide the documents necessary to transfer the ownership of the vehicle to the consignee prior to the auction being held. (3) For purposes of this subdivision, “fleet owner” is either of the following: (A) A person who is the registered or legal owner of 25 or more vehicles registered in this state and is the owner, as recorded in the department’s records, of the vehicles consigned for sale to the dealer. (B) A bankruptcy trustee who owns or has legal control of the vehicles consigned for sale to the dealer, government agency, or financial institution. (Amended by Stats. 1999, Ch. 672, Sec. 4. Effective January 1, 2000.)
  88. 11730.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A consignment agreement for a vehicle must include specified terms, including return of the vehicle, an accounting after sale, limits on use, and delivery of title-transfer documents.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11730. The consignment agreement required by Section 11729 shall contain all the following terms, phrases, conditions, and disclosures: (a) The date the agreement is executed. (b) All of the following statements: (1) “I (We), the undersigned consigner(s), hereby consign and deliver possession of my(our) vehicle, which is a (Year) ____ (Make) ____ (ID#) ____ (License) ____ (State) ____ (Mileage) ____, to (Consignee) _____ (Dealer #) ____ for the sole purpose of selling the vehicle and paying, to the consignor or his or her designee from the proceeds of the sale of the vehicle, the amount agreed upon under terms of this agreement. This agreement is effective and valid only for a period of ____ days from this date.” (2) “At the termination of this agreement, the consignee shall return the vehicle to the consignor, or, at the option of both the consignor and consignee, enter into a new agreement.” (3) “If the vehicle is sold by the consignee during the term of this agreement, the money due the consignor shall be disbursed within 20 days after the date of sale in accordance with the terms of this agreement. As used in this agreement, a “sale” occurs when the consignee either (A) receives the purchase price or its equivalent or executes a conditional sales contract for the vehicle, or (B) when the purchaser takes delivery of the vehicle, whichever occurs first.” (4) “The following information shall be completed prior to the signing of this agreement: Current market value: $____ Source: ____. Outstanding liens: $____ Lienholder: ____. (Any difference between the outstanding amount shown and the actual payoff to the lienholder will be credited to the consignor.) Repairs to be made: $____ Work Order #____. Moneys to the consignor: ____ percent of sale price, flat fee of $____ or the following specific formula: ____.” (5) “Within 20 days after sale, the consignee shall make an accounting to the consignor of all of the following: date of sale, repairs authorized by consignor (supported by work records), exact amount of any liens payable to lienholders, evidence of payment of any liens, and the total sales price.” (6) “The consigned vehicle is delivered to the consignee in trust for the exact terms set forth in this agreement. The consignee agrees to receive this vehicle in trust and not to permit its use for any other purpose other than contained in this agreement without the express written consent of the consignor.” (7) “Upon payment of the moneys due the consignor, the consignor agrees to furnish the consignee those documents necessary to transfer the ownership of the vehicle to the purchaser. Signatures: _____ Consignor _____ _____ _____ Date _____ _____ Address _____ _____ Consignor _____ _____ _____ Date _____ _____ Address _____ ” (8) “NOTICE TO CONSIGNOR: Failure of the consignee to comply with the terms of this agreement may be a violation of statute which could result in criminal or administrative sanctions, or both. If you feel the consignee has not complied with the terms of this agreement, please contact an investigator of the Department of Motor Vehicles.” (Amended by Stats. 2000, Ch. 1035, Sec. 12. Effective January 1, 2001.)
  89. 11735.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer may not broker retail sales unless it first pays the required fee and gets an autobroker’s endorsement; the department must provide an autobroker’s log, and the dealer owes a fiduciary duty when brokering sales.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11735. (a) No dealer shall engage in brokering a retail sales transaction without first paying the fee required by subdivision (d) of Section 9262 and obtaining from the department an autobroker’s endorsement to the dealer’s license. An autobroker’s endorsement shall be automatically cancelled upon the cancellation, suspension, revocation, surrender, or expiration of a dealer’s license. (b) Upon the issuance of an autobroker’s endorsement to a dealer’s license, the department shall furnish the dealer with an autobroker’s log. The autobroker’s log shall remain the property of the department and may be taken up at any time for inspection. (c) The autobroker’s log shall contain spaces sufficient for the dealer to record the following information with respect to each retail sale brokered by that dealer: (1) Vehicle identification number of brokered vehicle. (2) Date of brokering agreement. (3) Selling dealer’s name, address, and dealer number. (4) Name of consumer. (5) Brokering dealer’s name and dealer number. (d) Nothing in this code prohibits a dealer who has been issued an autobroker’s endorsement to his or her dealer’s license from delivering, with the selling dealer’s written approval, motor vehicles that have been sold pursuant to a duly executed motor vehicle purchase agreement or obtaining a consumer’s signature on a selling dealer’s motor vehicle purchase agreement that has already been executed by the selling dealer. (e) When brokering a retail sale as an agent of the consumer, selling dealer, or both, the brokering dealer owes a fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with its principal or principals. (f) For purposes of this section and Sections 11736, 11737, and 11738, “consumer” means any person who retains a dealer to perform brokering services in connection with a retail sale. (Amended by Stats. 1995, Ch. 211, Sec. 7. Effective January 1, 1996.)
  90. 11736.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer licensed under this article may not commit the listed acts when brokering a retail vehicle sale.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11736. It is unlawful for any dealer licensed under this article to do any of the following when brokering a retail sale: (a) Fail to execute a written brokering agreement, as described in Section 11738, and provide a completed copy to both of the following: (1) Any consumer entering into the brokering agreement. The completed copy shall be provided prior to the consumer’s signing of an agreement for the purchase of the vehicle described in the brokering agreement or, prior to accepting one hundred dollars ($100) or more from that consumer, whichever occurs first. (2) The selling dealer. The completed copy shall be provided prior to the selling dealer’s entering into a purchase agreement with the consumer. (b) Accept a purchase deposit from any consumer that exceeds 2.5 percent of the selling price of the vehicle described in the brokering agreement. (c) Fail to refund any purchase money, including purchase deposits, upon demand by a consumer at any time prior to the consumer’s signing of a vehicle purchase agreement with a selling dealer and taking delivery of the vehicle described in the brokering agreement. (d) Fail to cancel a brokering agreement and refund, upon demand, any money paid by a consumer, including any brokerage fee, under any of the following circumstances: (1) When the final price of the brokered vehicle exceeds the purchase price listed in the brokering agreement. (2) When the vehicle delivered is not as described in the brokering agreement. (3) When the brokering agreement expires prior to the customer being presented with a purchase agreement from a selling dealer arranged through the brokering dealer that contains a purchase price at or below the price listed in the brokering agreement. (e) Act as a seller and provide brokering services, both in the same transaction. (f) Fail to disclose to the consumer and selling dealer, as soon as practicable, whether the autobroker receives or does not receive a fee or other compensation, regardless of the form or time of payment, from the selling dealer and the dollar amount of any fee that the consumer is obligated to pay to the autobroker. This arrangement shall be confirmed in a brokering agreement. (g) Fail to record in the dealer’s autobroker log, for each brokered sale, all of the information specified in subdivision (c) of Section 11735. (h) Fail to maintain for a minimum of three years a copy of the executed brokering agreement and other notices and documents related to each brokered transaction. (i) Fail to advise the consumer, prior to accepting any money, that a full refund will be given if the motor vehicle ordered through the autobroker is not obtained for the consumer or if the service orally contracted for is not provided. (Amended by Stats. 1995, Ch. 211, Sec. 8. Effective January 1, 1996.)
  91. 11737.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A dealer who brokers a motor vehicle sale must deposit buyer money into a trust account and follow strict rules for handling, maintaining, and distributing that money.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11737. (a) A dealer who brokers a motor vehicle sale shall deposit directly into a trust account any purchase money, including purchase deposits, it receives from a consumer or a consumer’s lender. This subdivision does not require a separate trust account for each brokered transaction. (b) The brokering dealer shall not in any manner encumber the corpus of the trust account except as follows: (1) In partial or full payment to a selling dealer for a vehicle purchased by the brokering dealer’s consumer. (2) To make refunds. (c) Subdivision (b) shall not prevent payment of the interest earned on the trust account to the brokering dealer. (d) The brokering dealer shall serve as trustee of the trust account required by this section. If the brokering dealer is a partnership or a corporation, the managing partner of the partnership or the chief executive officer of the corporation shall be the trustee. The trustee may designate in writing that an officer or employee may manage the trust account if that officer or employee is under the trustee’s supervision and control, and the original of that writing is on file with the department. (e) All trust accounts required by this section shall be maintained at a branch of a bank, savings and loan association, or credit union regulated by the state or the government of the United States. (f) The brokering dealer has a fiduciary responsibility with respect to all purchase money received from a consumer or consumer’s lender relative to a brokered sale transaction. (g) The following are deemed to be held in trust for consumers who have paid purchase money to a brokering dealer: (1) All sums received by the brokering dealer whether or not required to be deposited in an actual trust account and regardless of whether any of these sums were required to be deposited or actually were deposited in a trust account. (2) All property with which any of the sums described in paragraph (1) has been commingled if any of these sums cannot be identified because of the commingling. (h) Upon any judicially ordered distribution of any money or property required to be held in trust and after all expenses of distribution approved by the court have been paid, every consumer of a brokering dealer has a claim on the trust for purchase money payments made to the brokering dealer. Unless a consumer can identify his or her funds in the trust within the time established by the court, each consumer shall receive a proportional share based on the amount paid. (Added by Stats. 1994, Ch. 1253, Sec. 14. Effective January 1, 1995.)
  92. 11738.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section requires specific formatting and disclosures in an autobroker brokering agreement, and gives the consumer cancellation and refund rights in certain cases.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11738. The brokering agreement required by Section 11736 shall be printed in no smaller than 10-point type and shall contain not less than the following terms, conditions, requirements, and disclosures: (a) The name, address, license number, and telephone number of the autobroker. (b) A complete description, including line-make, model, year model, and color, of the vehicle and the desired options. (c) The following statement: “The following information shall be completed prior to the signing of this brokering agreement: Dollar Purchase Price of Vehicle: ______. Date this agreement will expire if a purchase agreement from a selling dealer is not presented for your signature:__________. Fee that you will be obligated to pay us, if any:__________.” (d) One of the following notices, as appropriate, printed in at least 10-point bold type and placed immediately below the statement required by subdivision (c): (1) “We do not receive a fee from the selling dealer.” (2) “We receive a fee from the selling dealer.” (e) The following notice on the face of the brokering agreement with a heading in at least 14-point bold type and the text in at least 10-point bold type, circumscribed by a line, that reads as follows: NOTICE This is an agreement to provide services; it is not an agreement for the purchase of a vehicle. California law gives you the following rights and protection. Once you have signed this agreement, you have the right to cancel it and receive a full refund of any money paid, including any brokerage fee you may have paid, under any of the following circumstances: (1) The final price of the vehicle exceeds the purchase price listed above. (2) The vehicle is not as described above upon delivery. (3) This agreement expires prior to your being presented with a selling dealer’s purchase agreement. If you have paid a purchase deposit, you have the right to receive a refund of that deposit at any time prior to your signing a vehicle purchase agreement with a selling dealer. Purchase deposits are limited by law to no more than 2.5 percent of the purchase price of a vehicle and must be deposited by an autobroker or auto buying service in a federally insured trust account. If you are unable to resolve a dispute with your auto­broker or auto buying service, please contact an investigator of the Department of Motor Vehicles. (f) The date the agreement is executed. (g) The signature of the autobroker and consumer. (Amended by Stats. 2000, Ch. 1035, Sec. 13. Effective January 1, 2001.)
  93. 11739.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    In a brokered retail new motor vehicle sale, the selling franchised new car dealer must handle title, registration, license plates, warranty, and rebate/incentive applications; the manufacturer must directly notify the consumer of any recall.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11739. For purposes of title registration, warranties, rebates, and incentives, in a brokered retail new motor vehicle sale, the selling, franchised new car dealer, and not the autobroker, is responsible to apply for title in the name of the purchaser, to secure vehicle registration and the license plates for the purchaser, to secure the manufacturer’s warranty in the name of the purchaser, and to make all applications for any manufacturer’s rebates and incentives due the purchaser. If there is a manufacturer’s recall, the consumer shall be notified directly by the manufacturer. (Added by Stats. 1994, Ch. 1253, Sec. 16. Effective January 1, 1995.)
  94. 11740.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    For violations of this article, the code’s remedies and penalties add to, rather than replace, those available under other laws.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Issuance of Licenses and Certificates to Manufacturers, Transporters, and Dealers [11700 - 11740] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 11740. The remedies and penalties provided in this code for a violation of this article are cumulative to the remedies and penalties provided by other laws. (Added by Stats. 2002, Ch. 407, Sec. 3. Effective January 1, 2003.)
  95. 11750.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    This section says the article is called the Consumer Automotive Recall Safety Act (CARS Act), and it may be cited by that name.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11750. This article shall be known, and may be cited, as the Consumer Automotive Recall Safety Act (CARS Act). (Added by Stats. 2016, Ch. 682, Sec. 4. (AB 287) Effective January 1, 2017.)
  96. 11752.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    This section defines several terms used in the article, including dealer, manufacturer’s recall, personal vehicle sharing program, recall database, recall database report, and rental car company.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11752. As used in this article, the following definitions apply: (a) The term “dealer” has the same meaning as in Section 285. (b) (1) A “manufacturer’s recall” is a recall conducted pursuant to Sections 30118 to 30120, inclusive, of Title 49 of the United States Code. (2) A manufacturer’s recall does not include a service campaign or emission recall when the vehicle manufacturer or the National Highway Traffic Safety Administration has not issued a recall notice to owners of affected vehicles, pursuant to Section 30118 of Title 49 of the United States Code. (c) A “personal vehicle sharing program” has the same meaning as defined in Section 11580.24 of the Insurance Code. (d) A “recall database” is a database from which an individual may obtain vehicle identification number (VIN) specific manufacturer’s recall information relevant to a specific vehicle. (1) For a vehicle manufacturer that is not subject to the regulations adopted pursuant to Section 31301 of the federal Moving Ahead for Progress in the 21st Century Act (Public Law 112-141), a recall database is one of the following: (A) The recall data on a vehicle manufacturer’s Internet Web site for a specific vehicle’s line-make. (B) The recall data in a vehicle manufacturer’s internal system that provides information to its franchisees on vehicles subject to recall. (C) The recall data in subparagraph (A) or (B) that is contained in a commercially available vehicle history system. (2) For a vehicle manufacturer that is subject to the regulations adopted pursuant to Section 31301 of the federal Moving Ahead for Progress in the 21st Century Act (Public Law 112-141), a recall database shall include, at a minimum, the recall information required pursuant to Section 573.15 of Title 49 of the Code of Federal Regulations. (e) A “recall database report” is a report, specific to a vehicle that is identified by its VIN, containing information obtained from a recall database. (f) A “rental car company” is a person or entity in the business of renting passenger vehicles to the public in California. (Amended by Stats. 2018, Ch. 591, Sec. 1. (AB 2873) Effective January 1, 2019.)
  97. 11754.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    Dealers, rental car companies, and personal vehicle sharing programs must stop using recalled vehicles within stated time limits, with a narrow temporary-repair exception for some dealer or rental fleet vehicles.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11754. (a) No later than 48 hours after receiving a notice of a manufacturer’s recall, or sooner if practicable, a dealer or rental car company with a motor vehicle fleet of 34 or fewer loaner or rental vehicles shall not loan, rent, or offer for loan or rent a vehicle subject to that recall until the recall repair has been made. (b) If a recall notification indicates that the remedy for the recall is not immediately available and specifies actions to temporarily repair the vehicle in a manner to eliminate the safety risk that prompted the recall, the dealer or rental car company, after having the repairs completed, may loan or rent the vehicle. Once the remedy for the vehicle becomes available to the dealer or rental car company, the dealer or rental car company shall not loan or rent the vehicle until the vehicle has been repaired. (c) As soon as practicable but not more than 48 hours after a vehicle is subject to a manufacturer’s recall, as defined in subdivision (b) of Section 11752, and a recall notice has been issued by the manufacturer and appears in the recall database provided by the National Highway Traffic Safety Administration pursuant to Section 573.15 of Title 49 of the Code of Federal Regulations, or not more than 48 hours after the personal vehicle sharing program receives notification of a manufacturer’s recall by a third party with which the personal vehicle sharing program contracts to provide notification of active recalls, a personal vehicle sharing program shall not facilitate or otherwise arrange for transportation with that vehicle until after any recall notices for that vehicle no longer appear in the recall database provided by the National Highway Traffic Safety Administration. (d) The changes to this section made by the act adding subdivision (c) shall not apply in any manner to pending litigation. (e) This section does not affect the determination of whether or not a company is a rental car company or whether or not a company is a personal vehicle sharing company. (Amended by Stats. 2018, Ch. 591, Sec. 2. (AB 2873) Effective January 1, 2019.)
  98. 11755.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    A new motor vehicle dealer may get electronic authorization from consumers for recall repairs if it follows Bureau of Automotive Repair regulations.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11755. Notwithstanding Sections 1633.3 of the Civil Code and Section 9975 of this code, a new motor vehicle dealer may receive electronic authorization from consumers consistent with regulations adopted by the Bureau of Automotive Repair for any repair of a manufacturer recall. (Added by Stats. 2019, Ch. 490, Sec. 2. (AB 596) Effective January 1, 2020.)
  99. 11758.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    The department must include a recall disclosure statement on each vehicle registration renewal notice.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11758. The department shall include the following recall disclosure statement on each vehicle registration renewal notice: “NOTICE: Many vehicles have been recalled recently for needed repairs. Did you know you can check to see if your vehicle has an unrepaired manufacturer’s safety recall? For most vehicles, manufacturer safety recalls are repaired for free. You can check for any recalls and how to get the recall repaired at www.safercar.gov.” (Added by Stats. 2016, Ch. 682, Sec. 4. (AB 287) Effective January 1, 2017.)
  100. 11760.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    This section says it does not create legal duties about recall database report accuracy or later-added recall information, does not apply certain amendments to pending litigation, and does not change how a company is classified as a rental car company or personal vehicle sharing program.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11760. (a) This article shall not create any legal duty upon the dealer, rental car company, personal vehicle sharing program, or department related to the accuracy, errors, or omissions contained in a recall database report or any legal duty to provide information added to a recall database after the dealer, rental car company, personal vehicle sharing program, or department obtained the recall database report pursuant to Sections 11754 and 11758. (b) The changes to this section made by the act amending subdivision (a) shall not apply in any manner to pending litigation. (c) This section does not affect the determination of whether or not a company is a rental car company or whether or not a company is a personal vehicle sharing program. (Amended by Stats. 2018, Ch. 591, Sec. 3. (AB 2873) Effective January 1, 2019.)
  101. 11761.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    The rights and remedies under this article are cumulative and do not limit other rights or remedies otherwise available.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11761. The rights and remedies provided by this article are cumulative and shall not be construed as restricting any right or remedy that is otherwise available. (Added by Stats. 2016, Ch. 682, Sec. 4. (AB 287) Effective January 1, 2017.)
  102. 11762.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. )

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    The article’s provisions are severable: if one part or its application is invalid, the rest can still operate if it can be given effect.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1.1. Consumer Automotive Recall Safety Act [11750 - 11762] ( Article 1.1 added by Stats. 2016, Ch. 682, Sec. 4. ) ## 11762. The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Added by Stats. 2016, Ch. 682, Sec. 4. (AB 287) Effective January 1, 2017.)
  103. 11800.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    A person may not act as a vehicle salesperson unless they first get a license or temporary permit from the department, and they may not do so if that license or permit is canceled, suspended, revoked, invalidated, or expired.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11800. It shall be unlawful for any person to act as a vehicle salesperson without having first procured a license or temporary permit issued by the department or when that license or temporary permit issued by the department has been canceled, suspended, revoked, or invalidated or has expired. (Amended by Stats. 1990, Ch. 1563, Sec. 48.)
  104. 11802.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    The department must provide license application forms, require specified applicant information, issue licenses with required details, and may ask for a new fullface photo when a license is renewed.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11802. (a) The department shall prescribe and provide forms to be used for application for licenses to be issued under this article and require of applicants, as a condition of the issuance of a license, information concerning the applicant’s character, honesty, integrity, and reputation that it considers necessary. Every application for a vehicle salesperson’s license shall contain, in addition to the information that the department requires, a statement of all of the following facts: (1) The name and address of the applicant. (2) Whether the applicant has ever had a court judgment rendered for which they have been liable as a result of their activities in conjunction with an occupational license issued under this division, and whether that judgment remains unpaid or unsatisfied. (3) Whether the applicant ever had a license, issued under this division, revoked, suspended, or subjected to other disciplinary action and whether the applicant was ever a partner in a partnership or an officer, director, or stockholder in a corporation licensed under this division, the license of which was revoked, suspended, or subjected to other disciplinary action. (b) The department shall issue a license bearing a fullface photograph of the licensee and the following information: (1) Name and address. (2) Physical description. (3) The licensee’s usual signature. (4) Distinguishing vehicle salesperson’s license number. (c) The department may require a new fullface photograph at the time of the renewal of the license. (Amended by Stats. 2022, Ch. 838, Sec. 5. (SB 1193) Effective January 1, 2023.)
  105. 11803.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    The department may issue a temporary permit to a vehicle salesperson license applicant, and may cancel it immediately in certain cases.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11803. Pending the satisfaction of the department that the applicant has met the requirements of this chapter, it may issue a temporary permit to any person applying for a vehicle salesperson’s license. The temporary permit shall permit the operation by the salesperson for a period of not more than 120 days while the department is completing its investigation of the applicant for the license. If the department determines to its satisfaction that the temporary permit was issued upon a fraudulent application or determines or has reasonable cause to believe that the application is incorrect or incomplete or the temporary permit was issued in error, the department may cancel the temporary permit, effective immediately. The temporary permit shall become invalid when canceled or when the applicant’s license has been issued or refused. (Amended by Stats. 2002, Ch. 758, Sec. 10. Effective January 1, 2003.)
  106. 11804.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    The department may issue a vehicle salesperson’s license, and may refuse it for reasonable cause shown.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11804. The department may issue or, for reasonable cause shown, refuse to issue, a license to any applicant applying for a vehicle salesperson’s license. (Amended by Stats. 1990, Ch. 1563, Sec. 51.)
  107. 11806.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    The department may refuse, suspend, or revoke a vehicle salesperson’s license after notice and hearing if it makes one of the listed findings.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11806. The department, after notice and hearing, may refuse to issue, or may suspend or revoke, a vehicle salesperson’s license when it makes any of the following findings and determinations: (a) The applicant or licensee has outstanding an unsatisfied final court judgment rendered in connection with an activity licensed under this division. (b) The applicant or licensee has failed to pay funds or property received in the course of employment to a dealer entitled thereto. (c) The applicant or licensee has failed to surrender possession of, or failed to return, a vehicle to a dealer lawfully entitled thereto upon termination of employment. (d) A cause for refusal, suspension, or revocation exists under any provision of Sections 11302 to 11909, inclusive. (e) The applicant was previously the holder of an occupational license issued by another state authorizing the same or similar activities of a license issued under this division and that license was revoked or suspended for cause and was never reissued, or was suspended for cause, and the terms of suspension have not been fulfilled. (f) The applicant or licensee has acted as a dealer by purchasing or selling vehicles while employed by a licensed dealer without reporting that fact to the dealer or without utilizing the report of sale documents issued to the dealer. (g) The applicant or licensee has concurrently acted as a vehicle salesperson and engaged in that activity for, or on behalf of, more than one licensed dealer unless all of the licensed dealers for whom that salesperson works have common controlling ownership. Nothing in this section restricts the number of dealerships of which a person may be an owner, officer, or director, or precludes a vehicle salesperson from working for more than one dealer, provided that all of the licensed dealers for whom that salesperson works have common controlling ownership. For purposes of this subdivision, dealers have common controlling ownership when more than 50 percent 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. (h) The applicant or licensee has acted as a vehicle salesperson without having first complied with Section 11812. (i) The applicant or licensee was a managerial employee of a dealer during the time a person under the direction or control of the managerial employee committed wrongful acts which resulted in the suspension or revocation of the dealer’s license. (j) The applicant or licensee has acted as a dealer by purchasing or selling any vehicle and using the license, report of sale books, purchase drafts, financial institution accounts, or other supplies of a dealer to facilitate that purchase or sale, when the applicant or licensee is not acting on behalf of that dealer. (Amended by Stats. 2010, Ch. 483, Sec. 4. (SB 1004) Effective January 1, 2011.)
  108. 11808.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    Hearings under this article must follow Government Code Chapter 5 procedures.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11808. Every hearing provided for in this article shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 1990, Ch. 1563, Sec. 53.)
  109. 11808.5.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    This section lets the director settle a filed accusation with the licensee’s consent, sets penalty limits, and requires filing the agreement with the Office of Administrative Hearings.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11808.5. (a) After the filing of an accusation under this article, the director may enter into a stipulated compromise settlement agreement with the consent of the licensee on terms and conditions mutually agreeable to the director, the respondent licensee, and the accuser without further hearing or appeal. The agreement may include, but is not limited to, a period of probation or monetary penalties, or both. Except as provided in Section 11728, the monetary penalty shall not exceed five hundred dollars ($500) for each violation, and it shall be based on the nature of the violation and the effect of the violation on the purposes of this article. (b) A compromise settlement agreement may be entered before, during, or after the hearing, but is valid only if executed and filed pursuant to subdivision (d) before the proposed decision of the hearing officer, if any, is adopted or the case is decided. (c) The department shall adopt, by regulation, a schedule of maximum and minimum amounts of monetary penalties, the payment of which may be included as a term or condition of a compromise settlement agreement entered under subdivision (a). Any monetary penalty included in a compromise settlement agreement shall be within the range of monetary penalties in that schedule. (d) Any compromise settlement agreement entered under this section shall be signed by the director, the respondent licensee, and the accuser, or by their authorized representatives. The director shall file, or cause to be filed, the agreement with the Office of Administrative Hearings, together with the department’s notice of withdrawal of the accusation or statement of issues upon which the action was initiated. (e) If the respondent licensee fails to perform all of the terms and conditions of the compromise settlement agreement, the agreement is void and the department may take any action authorized by law, notwithstanding the agreement, including, but not limited to, refiling the accusation or imposing license sanctions. (Amended by Stats. 1990, Ch. 90, Sec. 5. Effective May 9, 1990.)
  110. 11810.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    The department may temporarily suspend a vehicle salesperson’s license, issue a probationary license with conditions, and the applicant can request a hearing in writing within 60 days in some cases. A revoked or denied applicant may reapply after one year, with a limited exception for earlier reapplication.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11810. (a) The department may, pending a hearing, temporarily suspend the license issued to a vehicle salesperson for a period of not more than 30 days if the director finds that action to be required in the public interest. In that case, a hearing shall be held and a decision thereon issued within 30 days after notice of the temporary suspension. (b) Except where the provisions of this code require the refusal to issue a license, the department may issue a probationary license subject to conditions to be observed by the licensee in the exercise of the privilege granted. The conditions to be attached to the exercise of the privilege shall be those which may, in the judgment of the department, be in the public interest and suitable to the qualifications of the applicant, as disclosed by the application and investigation by the department of the information contained in the application. (c) If the department issues or renews a vehicle salesperson’s license requiring conditions of probation or if the department refuses to issue a vehicle salesperson’s license, the applicant may demand in writing a hearing before the director or the director’s representative within 60 days after notice of refusal to issue or issuance of the probationary license. (d) A person whose license has been revoked or whose application for a license has been denied may reapply for a license after not less than one year has elapsed from the effective date of the decision revoking the license or denying the application, except that if the decision was based upon subdivision (a) of Section 11806, an earlier reapplication may be made accompanied by evidence satisfactory to the department that those grounds for revocation or denial of the license no longer exist. (Amended by Stats. 1990, Ch. 1563, Sec. 54.)
  111. 11812.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    Vehicle salespersons must give their license to their dealer at the start of employment, keep the license displayed at each selling location during employment, return the license and destroy copies when employment ends, and report residence-address changes to the department within five days.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11812. (a) A vehicle salesperson licensed under this article shall, at the time of employment, deliver his or her salesperson’s license to his or her employing dealer for the posting of the salesperson’s license or a true and exact copy of the salesperson’s license in a place conspicuous to the public at each location where he or she is actually engaged in the selling of vehicles for the employing dealer. (b) The license, or a true and exact copy of the license, shall be displayed continuously at each location where he or she is actually engaged in the selling of vehicles during the employment. If a vehicle salesperson’s employment is terminated, the license shall be returned to the salesperson and all copies of the license used by the dealer for posting or display shall be destroyed by the dealer. (c) A vehicle salesperson licensed pursuant to this article shall report in writing to the department every change of residence address within five days of the change. (d) A person currently or previously licensed under this article who no longer resides at the address last filed with the department may be served with process issued pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code by registered mail at that residence, unless the person has notified the department in writing of another address where service may be made. (Amended by Stats. 2010, Ch. 483, Sec. 5. (SB 1004) Effective January 1, 2011.)
  112. 11814.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    Vehicle salesperson licenses are generally valid for three years, renewal can be done before expiration, and a duplicate license is required if the original is lost or mutilated.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11814. (a) Every original vehicle salesperson’s license issued, and every vehicle salesperson’s license renewed, pursuant to subdivision (b) shall be valid for a period of three years from the date of issuance unless canceled, suspended, or revoked by the department. (b) Renewal of a vehicle salesperson’s license may be made prior to the expiration date. A vehicle salesperson may not renew their license after the date of expiration. (c) A salesperson shall obtain a duplicate license when the original is either lost or mutilated. (Amended by Stats. 2022, Ch. 838, Sec. 6. (SB 1193) Effective January 1, 2023.)
  113. 11819.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    A person must not lend, misuse, misrepresent, surrender improperly, or reproduce a salesperson’s license in prohibited ways.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11819. It is unlawful for a person: (a) To lend a salesperson’s license to any other person or knowingly permit its use by another. (b) To display or represent a salesperson’s license not issued to the person as being his or her license. (c) To fail or refuse to surrender to the department, upon its lawful demand, a salesperson’s license that has been suspended, revoked, or canceled. (d) To permit any unlawful use of a salesperson’s license issued to him or her. (e) To photograph, photostat, duplicate, or in any way reproduce a salesperson’s license or facsimile thereof in a manner that it could be mistaken for a valid license, or to display or have in possession a photograph, photostat, duplicate, reproduction, or facsimile unless for display by a dealer, or as authorized by this code. (Amended by Stats. 2010, Ch. 483, Sec. 6. (SB 1004) Effective January 1, 2011.)
  114. 11820.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    The department charges set fees for an original license, license renewal, and a duplicate license.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11820. The following fees shall be paid to the department: (a) Except as provided by Section 42231, a nonrefundable fee for the original issuance of a license, fifty dollars ($50). (b) Fee for license renewal, fifty dollars ($50). (c) Fee for a duplicate license, fifteen dollars ($15). (Amended by Stats. 1990, Ch. 90, Sec. 6. Effective May 9, 1990. Operative July 1, 1990, by Sec. 7 of Ch. 90.)
  115. 11822.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    A vehicle salesperson’s license or permit is automatically canceled if the licensee does not pay the required fees or submit a renewal application before the current license or permit expires.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11822. The vehicle salesperson’s license or any permit provided in this article shall be automatically canceled upon the failure of a licensee to pay the required fees or to file an application for renewal of the license or permit before the date of expiration of the current license or permit. (Amended by Stats. 1984, Ch. 499, Sec. 13.)
  116. 11824.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. )

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    A suspended, expired, or canceled vehicle salesperson license can still be the subject of an accusation for revocation or suspension, and the department may consider that determination when deciding later license applications.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 4. Manufacturers, Transporters, Dealers, and Salesmen [11700 - 11909] ( Chapter 4 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Vehicle Salespersons [11800 - 11824] ( Heading of Article 2 amended by Stats. 1991, Ch. 13, Sec. 26. ) ## 11824. The suspension, expiration, or cancellation of a vehicle salesperson’s license issued under this article does not prevent the filing of an accusation for the revocation or suspension of the suspended, expired, or canceled license as provided in Section 11806, and the department’s decision that the license should be suspended or revoked. That determination may be considered in granting or refusing to grant any subsequent license authorized by this division to that licensee. (Amended by Stats. 1990, Ch. 1563, Sec. 57.)
  117. 11930.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 5. Sale of Housecars [11930 - 11931] ( Chapter 5 added by Stats. 1980, Ch. 853, Sec. 1. )

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    This section defines “first-stage manufacturer” and “second-stage manufacturer” for housecars.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 5. Sale of Housecars [11930 - 11931] ( Chapter 5 added by Stats. 1980, Ch. 853, Sec. 1. ) ## 11930. As used in this chapter: (a) “First-stage manufacturer” with reference to a housecar means the manufacturer of the engine, chassis, and drive train of the vehicle. (b) “Second-stage manufacturer” means the installer of the structure and equipment permanently upon the engine, chassis, and drive train of the vehicle rendering the vehicle complete and suitable for human habitation and ready for delivery to the dealer or the buyer. (Added by Stats. 1980, Ch. 853, Sec. 1.)
  118. 11931.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 5. Sale of Housecars [11930 - 11931] ( Chapter 5 added by Stats. 1980, Ch. 853, Sec. 1. )

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    A dealer selling a new housecar must give the purchaser a warranty list and copies of each express warranty, and both sides must sign and keep a copy of the list.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 5. Sale of Housecars [11930 - 11931] ( Chapter 5 added by Stats. 1980, Ch. 853, Sec. 1. ) ## 11931. (a) The dealer shall give the purchaser of a new housecar a list of every express warranty, of which he has notice, that has been issued on the housecar, or a part thereof, by the first-stage manufacturer, the second-stage manufacturer, the dealer, or any other party. The dealer shall also give the purchaser a copy of each warranty. (b) The purchaser shall sign the list as an acknowledgment that he has received each warranty listed. The dealer shall sign to signify that all express warranties applicable to the housecar appear on the list. Both the purchaser and the dealer shall retain a copy of the list. (c) Violation of this section is an infraction. (Added by Stats. 1980, Ch. 853, Sec. 1.)
  119. 11950.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 6. Sale of Used Vehicles [11950- 11950.] ( Chapter 6 added by Stats. 2012, Ch. 741, Sec. 1. )

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    Buy-here-pay-here dealers must label used vehicles for retail sale with the vehicle’s reasonable market value and give prospective buyers the pricing-guide information used to determine it.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 6. Sale of Used Vehicles [11950- 11950.] ( Chapter 6 added by Stats. 2012, Ch. 741, Sec. 1. ) ## 11950. (a) A buy-here-pay-here dealer shall affix a label on any used vehicle being offered for retail sale that states the reasonable market value of that vehicle. The label shall meet all of the following conditions: (1) Be in writing. (2) Be printed with a heading that reads “REASONABLE MARKET VALUE OF THIS VEHICLE” in at least 16-point bold type and text in at least 12-point type. (3) Be located adjacent to the window sticker identifying the equipment provided with the vehicle or, if none, it shall be located prominently and conspicuously on the vehicle so that it is readily readable. (4) Contain the information used to determine the reasonable market value of the vehicle, including, but not limited to, the use of a nationally recognized pricing guide for used vehicles. (5) Contain the date the reasonable market value was determined. (6) Indicate that the reasonable market value is being provided only for comparison shopping and is not the retail sale price or the advertised price of the vehicle. (b) A buy-here-pay-here dealer shall provide to a prospective buyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide that the buy-here-pay-here dealer used to determine the reasonable market value of the vehicle. (c) As used in this section: (1) “Reasonable market value” means the average retail value of a used vehicle based on the condition, mileage, year, make, and model of the vehicle, as determined within the last 60 days by a nationally recognized pricing guide that provides used vehicle retail values or pricing reports to vehicle dealers or the public. (2) “Nationally recognized pricing guide” includes, but is not limited to, the Kelley Blue Book (KBB), Edmunds, the Black Book, or the National Automobile Dealers’ Association (NADA) Guide. (Added by Stats. 2012, Ch. 741, Sec. 1. (AB 1534) Effective January 1, 2013.)
  120. 12.

    ## Vehicle Code - VEH ## General Provisions ( General Provisions enacted by Stats. 1959, Ch. 3. )

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    This provision says the present tense also covers past and future tenses, and the future tense also covers the present.

    ## Vehicle Code - VEH ## General Provisions ( General Provisions enacted by Stats. 1959, Ch. 3. ) ## 12. The present tense includes the past and future tenses; and the future, the present. (Enacted by Stats. 1959, Ch. 3.)
  121. 12.2.

    ## Vehicle Code - VEH ## General Provisions ( General Provisions enacted by Stats. 1959, Ch. 3. )

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    For this code section, “spouse” includes a registered domestic partner.

    ## Vehicle Code - VEH ## General Provisions ( General Provisions enacted by Stats. 1959, Ch. 3. ) ## 12.2. “Spouse” includes “registered domestic partner,” as required by Section 297.5 of the Family Code. (Added by Stats. 2016, Ch. 50, Sec. 117. (SB 1005) Effective January 1, 2017.)
  122. 12000.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. )

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    The Bureau of Automotive Repair must enforce this chapter and may investigate and inspect retail outlets for compliance.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. ) ## 12000. The Bureau of Automotive Repair in the Department of Consumer Affairs shall enforce the provisions of this chapter. The Bureau of Automotive Repair shall investigate and inspect retail outlets to insure compliance with this chapter. (Repealed and added by Stats. 1975, Ch. 678.)
  123. 12001.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. )

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    Sellers and installers of new, used, or factory rebuilt parts in passenger cars must give the customer an invoice with the required part identification.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. ) ## 12001. (a) Any person who sells and installs new parts in passenger cars, in the ordinary course of his business, shall provide the customer with an invoice which identifies by brand name, or other comparable designation, the part or parts installed. (b) Any person who sells and installs used or factory rebuilt parts in passenger cars, in the ordinary course of his business, shall provide the customer with an invoice which specifically designates the used part or parts installed. (c) This section shall not apply to any fitting or other device necessary to the installation of any new, used or factory rebuilt part subject to the provisions of this section. (Added by Stats. 1975, Ch. 678.)
  124. 12002.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. )

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    A person must not knowingly manufacture, sell, or install in a vehicle any part that has been determined defective and subject to customer notification or recall under federal law.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. ) ## 12002. No person shall knowingly manufacture, sell, or install in any vehicle, any vehicle part which, under the provisions of Chapter 301 (commencing with Section 30101) of Part A of Subtitle VI of Title 49 of the United States Code, is, or has been, determined to be defective and subject to customer notification or recall. (Amended by Stats. 2018, Ch. 198, Sec. 20. (AB 3246) Effective January 1, 2019.)
  125. 12003.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. )

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    Any violation of this chapter is a misdemeanor.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 7. Sale of Automobile Parts [12000 - 12003] ( Chapter 7 added by Stats. 1975, Ch. 678. ) ## 12003. Any violation of this chapter shall be a misdemeanor. (Added by Stats. 1975, Ch. 678.)
  126. 12101.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. )

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    Transactions regulated by this chapter are not subject to the cited Business and Professions Code article, and people are not treated as secondhand dealers just because they engage in activities regulated here.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. ) ## 12101. Any transaction which is regulated by this chapter shall not be subject to the provisions of Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code, regulating transactions in identifiable secondhand tangible personal property. No person shall be considered a “secondhand dealer” within the meaning of Section 21661 of the Business and Professions Code because of activities regulated by this chapter. (Added by Stats. 1978, Ch. 525.)
  127. 12102.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. )

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    This section defines “private party vehicle market,” “private party vehicle market operator,” and “vendor,” and excludes certain dealer-arranged or dealer-sponsored events from that definition.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. ) ## 12102. The following definitions apply with respect to this chapter: (a) “Private party vehicle market” means any event conducted under any of the following circumstances: (1) An event at which two or more vehicles are offered or displayed for sale or exchange and a fee is charged for the privilege of offering or displaying the vehicles for sale or exchange. (2) An event at which a fee is charged to prospective buyers for admission to the area where vehicles are offered or displayed for sale or exchange. (3) An event, other than one conducted by a person listed in subdivision (a) of Section 286, at which used vehicles are offered or displayed for sale or exchange if such event is held at the same place more than six times in any 12-month period, regardless of the number of persons offering or displaying vehicles or the absence of fees. (b) “Private party vehicle market operator” means any person who controls, manages, conducts, or otherwise administers a private party vehicle market. (c) “Vendor” means any person who exchanges, sells, or offers for sale or exchange any vehicle at a private party vehicle market. (d) Any event arranged or sponsored, or both, by a dealer licensed pursuant to Division 5 (commencing with Section 11100) shall not be considered a private party vehicle market. (Added by Stats. 1978, Ch. 525.)
  128. 12103.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. )

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    Private party vehicle market operators must keep specified vendor and vehicle records for at least one year and provide that information on request to a peace officer or designated department employee.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. ) ## 12103. (a) Every private party vehicle market operator shall maintain a record, for not less than one year, of all of the following information: (1) The name of each vendor selling, exchanging, or offering for sale or exchange, any vehicle at a private party vehicle market. (2) The vendor’s driver’s license number. (3) The registration number assigned to the vehicle and the vehicle identification number. (4) The number of the vehicle’s current and valid certificate of compliance. (5) The make, model, and color of the vehicle. (b) That information shall be made available, upon request, to any peace officer and to any employee of the department designated by the director. (Amended by Stats. 1991, Ch. 1054, Sec. 4.)
  129. 12104.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. )

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    Private party vehicle market operators must give vendors the forms and public information needed to comply with vehicle ownership and registration transfer rules.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 8. Private Party Vehicle Markets [12101 - 12104] ( Chapter 8 added by Stats. 1978, Ch. 525. ) ## 12104. (a) Every private party vehicle market operator shall supply, to vendors, sufficient forms which are necessary to comply with Section 5900. (b) Every private party vehicle market operator shall supply, to vendors, all information made available by the department to the general public regarding all existing provisions of law pertaining to requirements for the transfer of vehicle ownership and registration between parties who are not dealers. (Added by Stats. 1978, Ch. 525.)
  130. 12110.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 9. Towing [12110 - 12111] ( Chapter 9 added by Stats. 1983, Ch. 746, Sec. 1. )

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    Towing services, and people or public entities dealing with them, generally may not exchange commissions, gifts, or other compensation for arranging tow-truck services, subject to a public-entity franchise-fee exception.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 9. Towing [12110 - 12111] ( Chapter 9 added by Stats. 1983, Ch. 746, Sec. 1. ) ## 12110. (a) Except as provided in subdivision (b), no towing service shall provide and no person or public entity shall accept any direct or indirect commission, gift, or any compensation whatever from a towing service in consideration of arranging or requesting the services of a tow truck. As used in this section, “arranging” does not include the activities of employees or principals of a provider of towing services in responding to a request for towing services. (b) Subdivision (a) does not preclude a public entity otherwise authorized by law from requiring a fee in connection with the award of a franchise for towing vehicles on behalf of that public entity. However, the fee in those cases may not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program. (c) Any towing service or any employee of a towing service that accepts or agrees to accept any money or anything of value from a repair shop and any repair shop or any employee of a repair shop that pays or agrees to pay any money or anything of value as a commission, referral fee, inducement, or in any manner a consideration, for the delivery or the arranging of a delivery of a vehicle, not owned by the repair shop or towing service, for the purpose of storage or repair, is guilty of a misdemeanor, punishable as set forth in subdivision (d). Nothing in this subdivision prevents a towing service from towing a vehicle to a repair shop owned by the same company that owns the towing service. (d) Any person convicted of a violation of subdivision (a) or (c) shall be punished as follows: (1) Upon first conviction, by a fine of not more than five thousand dollars ($5,000) or imprisonment in the county jail for not more than six months, or by both that fine and imprisonment. If the violation of subdivision (a) or (c) is committed by a tow truck driver, the person’s privilege to operate a motor vehicle shall be suspended by the department under Section 13351.85. The clerk of the court shall send a certified abstract of the conviction to the department. If the violation of either subdivision (a) or (c) is committed by a tow truck driver, the court may order the impoundment of the tow truck involved for not more than 15 days. (2) Upon a conviction of a violation of subdivision (a) or (c) that occurred within seven years of one or more separate convictions of violations of subdivision (a) or (c), by a fine of not more than ten thousand dollars ($10,000) or imprisonment in the county jail for not more than one year, or by both that fine and imprisonment. If the violation of subdivision (a) or (c) is committed by a tow truck driver, the person’s privilege to operate a motor vehicle shall be suspended by the department under Section 13351.85. The clerk of the court shall send a certified abstract of the conviction to the department. If the violation of either subdivision (a) or (c) is committed by a tow truck owner, the court may order the impoundment of the tow truck involved for not less than 15 days but not more than 30 days. (Amended by Stats. 2000, Ch. 641, Sec. 1. Effective January 1, 2001.)
  131. 12111.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 9. Towing [12110 - 12111] ( Chapter 9 added by Stats. 1983, Ch. 746, Sec. 1. )

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    A city or city and county generally may not charge a revenue-raising business license tax on tow truck operations when the vehicle tower has no fixed local place of business, unless subdivision (b) applies.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 9. Towing [12110 - 12111] ( Chapter 9 added by Stats. 1983, Ch. 746, Sec. 1. ) ## 12111. (a) Except as provided in subdivision (b), no city or city and county may impose a business license tax for revenue-raising purposes on the operation of a tow truck in its jurisdiction if the vehicle tower maintains no fixed place of business within the boundaries of the city or city and county. (b) A city or city and county may impose a business license tax upon a vehicle tower doing business within its jurisdiction who has no fixed place of business therein, if the license tax is graduated according to gross receipts attributable to work done within the city or city and county. (Amended by Stats. 1988, Ch. 924, Sec. 6.)
  132. 12120.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 10. Sales of Vehicles by Private Owners [12120 - 12121] ( Chapter 10 added by Stats. 1986, Ch. 668, Sec. 1. )

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    Only dealers, persons described in Section 286, or registered owners of record may sell or offer for sale certain registrable vehicles, except as allowed by Section 12121.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 10. Sales of Vehicles by Private Owners [12120 - 12121] ( Chapter 10 added by Stats. 1986, Ch. 668, Sec. 1. ) ## 12120. Only a dealer, a person described in Section 286, or the registered owner of record shall sell or offer for sale a vehicle of a type required to be registered pursuant to Division 3 (commencing with Section 4000) or identified pursuant to Division 16.5 (commencing with Section 38000), except as provided in Section 12121. (Added by Stats. 1986, Ch. 668, Sec. 1.)
  133. 12121.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 10. Sales of Vehicles by Private Owners [12120 - 12121] ( Chapter 10 added by Stats. 1986, Ch. 668, Sec. 1. )

    Verify source ↗

    Section 12121 limits Section 12120 by exempting certain vehicle sales and sellers from its application or prohibition.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 10. Sales of Vehicles by Private Owners [12120 - 12121] ( Chapter 10 added by Stats. 1986, Ch. 668, Sec. 1. ) ## 12121. (a) Section 12120 does not apply to a dealer licensed pursuant to Chapter 4 (commencing with Section 11700) when acting under authority of the license, or to his or her authorized agent. (b) Section 12120 does not prohibit the sale of a vehicle by any of the following persons not engaged in the business of selling vehicles: (1) Anyone related by blood, adoption, or marriage to the registered owner. (2) The receiver, administrator, executor, guardian, or other person appointed by, or acting under, a judgment or order of any court. (3) The trustee of a trust in which the vehicle is registered as an asset. (4) Any public officer in the performance of his or her official duties. (5) An attorney on behalf of a client who is the registered owner. (6) The owner, officer, or designated representative of a business in whose name the vehicle is registered. (7) The legal owner as shown on the certificate of ownership. (8) A person who has prior written authorization from the registered owner of the vehicle, and that person does not receive or expect to receive a commission, money, brokerage fees, profit, or any other thing of value from either the seller or purchaser of the vehicle. (9) An insurer selling the salvage of one of its insured’s vehicle or the stolen vehicle of one of its insured which has been recovered. (Added by Stats. 1986, Ch. 668, Sec. 1.)
  134. 12200.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

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    This section defines key terms used in the Consumer Recovery Fund chapter.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12200. The following definitions apply to this chapter: (a) “Application” means an application to the recovery corporation for the payment of an eligible claim from the recovery fund that is filed with the recovery corporation after January 1, 2009. (b) “Consumer” means a person who either (1) purchased or leased, or became obligated to purchase or lease, a motor vehicle to be used primarily for personal, family, or household purposes from a dealer or lessor-retailer licensed under this code, or (2) consigned for sale a motor vehicle that was used primarily for personal, family, or household purposes to a dealer licensed under this code. (c) “Eligible claim” means an unsatisfied claim for economic loss, not barred by the statutes of limitation, that accrues after July 1, 2008, as a result of the failure of a dealer licensed under this code, or, if applicable, a lessor-retailer licensed under this code, to do any of the following: (1) Remit license or registration fees received or contractually obligated to be paid from a consumer to the department. (2) Pay to the legal owner of a vehicle transferred as a trade-in by a consumer to the dealer or lessor-retailer the amount necessary to discharge the prior credit balance owed to the legal owner. (3) Pay to the lessor registered in accordance with Section 4453.5 of a vehicle transferred as a trade-in by a consumer to the dealer or lessor-retailer the amount the dealer or lessor-retailer agreed to pay to the lessor. (4) Pay the amount specified in a consignment agreement to a consumer after the sale of a consigned vehicle. (5) Provide a consumer who purchased a vehicle from the dealer or lessor-retailer with good title to the vehicle, free from any security interest or other lien, encumbrance, or claim, unless otherwise clearly and conspicuously provided for by the written sale agreement. (6) Pay to a third party any amount received from, or contractually obligated to be paid by, a consumer for insurance, service contracts, or goods or services purchased through the dealer or lessor-retailer and to be provided by the third party. (d) “Participant” means a dealer licensed under this code or a lessor-retailer licensed under this code. (e) “Recovery corporation” means the Consumer Motor Vehicle Recovery Corporation. (f) “Recovery fund” means the consumer recovery fund established by the recovery corporation pursuant to Section 12203 for the payment of eligible claims. (Amended by Stats. 2013, Ch. 392, Sec. 3. (AB 501) Effective January 1, 2014.)
  135. 12201.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    Participants must maintain a nonprofit corporation named the Consumer Motor Vehicle Recovery Corporation, and participants may not pass the Section 4456.3 fee on to consumers as a separate charge.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12201. (a) Participants shall maintain a corporation under the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code) that shall operate under the name “Consumer Motor Vehicle Recovery Corporation.” (b) The purpose of the Consumer Motor Vehicle Recovery Corporation is to provide payments to consumers on eligible claims subject to the requirements and limitations set forth in this chapter. (c) A participant may not charge or collect from a consumer a separate fee or charge to recoup the fee paid by the participant pursuant to Section 4456.3. (d) The State of California and its officers, agents, or employees shall not be liable for any act or omission of the recovery corporation or its directors, officers, agents, or employees. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  136. 12202.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    This section sets the recovery corporation’s board at six directors and lists who appoints each type of director. It also limits who may serve as a participant director.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12202. (a) The recovery corporation shall have a board of directors composed of six directors, as follows: (1) One public consumer representative member appointed by the Director of Consumer Affairs who shall serve until the appointment is revoked, another appointment is made, or until the appointed director resigns. The consumer representative shall be either of the following: (A) A current or former prosecutor with at least two years of direct experience in the civil or criminal enforcement of consumer protection laws, including laws prohibiting deceptive advertising and unlawful and fraudulent practices. (B) A current or former employee of a government agency who has at least two years of direct experience in one of the following: (i) The investigation, mediation, and resolution of consumer complaints. (ii) Providing counseling, information, education, or referral services to consumers. (iii) Administering a consumer protection program that provides any of the services described in clause (i) or (ii). (2) A representative of the Attorney General, who shall serve as an ex officio, nonvoting member. (3) One member of the general public appointed by the Senate Committee on Rules to a two-year term. (4) One member of the general public appointed by the Speaker of the Assembly to a two-year term, except that the initial appointment to the board of directors shall be for a one-year term. (5) Two participants, who shall be appointed by the Governor for two-year terms, except that the initial term of the position of one of the participant directors shall be for a one-year term. (b) A person is eligible to be nominated and to serve as a participant director if the person satisfies all of the following conditions: (1) The person’s primary occupation, at the time of nomination and continuously during the previous three years, has been as an owner or general manager of a licensed dealer or lessor-retailer. (2) The person has not been convicted of a crime, including a plea or verdict of guilty or a conviction following a plea of nolo contendere. (3) The person is not subject to a judgment or administrative order, whether entered after adjudication or stipulation, predicated on that person’s commission of an act of dishonesty, fraud, deceit, or violation of this chapter or Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code. (4) The person is not a defendant in a pending criminal or civil law enforcement action brought by a public prosecutor. (5) The person has not served as a participant director of the recovery corporation at any time during the previous 18 months. (c) A director who does not qualify to be a participant director, whose term has lapsed, or who otherwise becomes unable to serve shall not continue to serve as a director. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  137. 12203.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The recovery corporation must create and manage a consumer recovery fund, keep the money in trust, limit operations-account spending, and file quarterly reports to the Attorney General’s Consumer Protection Section.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12203. (a) The recovery corporation shall establish a consumer recovery fund for the payment of claims as provided in this chapter. The recovery corporation shall receive funds from the department as provided in Section 4456.3 and shall promptly notify the department when the recovery fund balance reaches the amounts specified in subdivision (b) of Section 4456.3. (b) The recovery corporation shall establish and maintain an operations account within the recovery fund for the payment of costs of operations and administration. The recovery corporation shall prepare, before its fiscal year end, an estimated annual operational budget projecting the costs of operations and administration for the succeeding fiscal year, excluding the amount paid for claims. The recovery corporation shall not expend more than two hundred fifty thousand dollars ($250,000) each fiscal year from the operations account for the administration of this chapter. (c) The recovery corporation shall invest all funds received from the department pursuant to Section 4456.3, and interest earned on those funds, deposited in the recovery fund, in a federally insured account or in federally insured certificates of deposit at a California state or federally chartered bank or savings bank. (d) The recovery corporation holds all money in the recovery fund in trust for the purposes provided in this chapter and shall disburse funds only as provided in this chapter. (e) The recovery corporation shall separately account for disbursements and collections. The accounting shall include a record of each claim paid that indicates the name, address, and phone number of each claimant receiving payment, the amount of the payment, and the name of the participant for which a claim was paid. Quarterly reports shall be provided to the office of the Attorney General, Consumer Protection Section, commencing on or before October 31, 2008, and within 30 days after the end of each quarter thereafter. (f) The recovery corporation may adopt reasonable written bylaws, rules, and procedures to carry out the purposes of this chapter. The representative of the Attorney General may vote on the adoption of bylaws, rules, and procedures notwithstanding paragraph (2) of subdivision (a) of Section 12202. (Amended by Stats. 2024, Ch. 853, Sec. 30. (AB 3281) Effective January 1, 2025.)
  138. 12204.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    A consumer may apply to the recovery corporation for payment of an eligible claim when the dealer or lessor-retailer has stopped selling or leasing vehicles to the public or is in bankruptcy.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12204. (a) A consumer may file an application with the recovery corporation for the payment of the consumer’s eligible claim if a dealer or lessor-retailer against whom the claim is asserted has ceased selling and leasing motor vehicles to the general public or has become subject to a petition in bankruptcy. (b) (1) The application shall be verified and shall set forth all of the following information: (A) The consumer’s name, address, and telephone number. (B) The amount of the eligible claim. (C) A description of the circumstances demonstrating an eligible claim. (D) A statement indicating the consumer’s belief that the dealer or lessor-retailer has ceased selling and leasing motor vehicles to the general public or has become subject to a petition in bankruptcy and the reasons for this belief. (E) A statement indicating what action, if any, the applicant has taken to recover the amount of the eligible claim. (F) A statement indicating that the consumer’s application for payment does not include any amount for which the consumer has obtained recovery under the dealer’s bond required by Section 11710. (2) Nothing in this chapter shall be construed to require a consumer to bring a civil action to obtain recovery, file a bankruptcy claim, or file a crime report with a law enforcement agency in order to obtain payment of an eligible claim submitted to the recovery corporation. (c) The application shall be accompanied by a copy of the agreement between the consumer and the dealer or lessor-retailer, unless the agreement is unnecessary to the recovery corporation’s determination of the validity of the claim. (d) If the eligible claim is based on the failure to remit license or registration fees, the application shall be accompanied by evidence demonstrating that the consumer paid money or other consideration for the fees, or became obligated to pay the fees, and that the fees had not been remitted. The eligible claim shall be limited to the dollar amount of the license or registration fees not remitted and a late charge or penalty. (e) If the eligible claim is based on the failure to pay the proceeds of a consignment sale, the application shall be accompanied by the consignment agreement, evidence that the consigned vehicle was sold, and by the consumer’s verified statement that the consumer did not receive the portion of the proceeds of the sale to which the consumer was entitled. The eligible claim is limited to the dollar amount specified in a written consignment agreement to be paid to the consignor. (f) If the eligible claim is based on the failure to pay the legal owner of the consumer’s trade-in vehicle, the application shall be accompanied by a statement from the legal owner of the amount, if any, that he or she received from the dealer or lessor-retailer. The eligible claim is limited to the dollar amount necessary to discharge the credit balance owing on the trade-in vehicle. (g) If the eligible claim is based on the failure to pay the lessor of the consumer’s trade-in vehicle, the application shall be accompanied by a statement from the lessor of the amount, if any, that the lessor received from the dealer or lessor-retailer. The eligible claim is limited to the dollar amount necessary to pay the lessor the total amount that the dealer or lessor-retailer agreed with the consumer to pay the lessor. (h) If the eligible claim is based on the failure to provide good title, the application shall be accompanied by a statement from the legal owner or other claimant of the amount, if any, that he or she received from the dealer or lessor-retailer. The eligible claim is limited to the remaining dollar amount necessary to discharge the valid security interest, lien, encumbrance, or other claim clouding title to the vehicle. (i) If the eligible claim is based on the failure to pay third parties for insurance, service contracts, or goods or services, the application shall be accompanied by a statement from the third party of the amount, if any, that he or she received from the dealer or lessor-retailer. The eligible claim is limited to the difference between the dollar amount the consumer paid or was contractually obligated to pay to the dealer or lessor-retailer for the insurance, service contracts, or goods or services purchased through the dealer or lessor-retailer and to be provided by the third party and the dollar amount actually received by the third party from the dealer or lessor-retailer for the insurance, service contracts, or goods or services. (j) The recovery corporation may require reasonable additional information designed to facilitate payment of eligible claims. (k) (1) For claims that have accrued on or after July 1, 2008, and before January 1, 2009, the application shall be filed within 18 months of the date upon which the dealer or lessor-retailer ceased selling or leasing motor vehicles to the general public or became subject to a petition in bankruptcy. (2) For claims that have accrued on or after January 1, 2009, the application shall be filed within one year of the date upon which the dealer or lessor-retailer ceased selling or leasing motor vehicles to the general public or became subject to a petition in bankruptcy. (Amended by Stats. 2013, Ch. 392, Sec. 4. (AB 501) Effective January 1, 2014.)
  139. 12205.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The recovery corporation must prepare claim information materials and provide them in English and Spanish on request.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12205. The recovery corporation shall develop a notice fully explaining a consumer’s right to make a claim from the fund, an application form, and an explanation of how to complete the application. The notice, application, and explanation shall be in English and Spanish and shall be provided to a person upon request. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  140. 12206.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The recovery corporation must tell an applicant within 30 days whether the application is complete, and after notice of a complete application it must pay the eligible claim or deny it within 60 days, subject to a possible good-cause extension. Directors with specified conflicts must not take part in a claim decision.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12206. (a) Within 30 days of receiving an application, the recovery corporation shall notify the applicant, in writing, that the application is complete or, if the application is incomplete, what additional information is required. (b) (1) Within 60 days of the recovery corporation providing notice to the applicant of a complete application, the recovery corporation shall either pay the eligible claim from the fund as prescribed in this chapter or deny the claim. A claim shall be deemed granted unless the directors affirmatively vote to deny the claim. (2) The recovery corporation, for good cause, may extend the 60-day period not more than an additional 90 days to investigate the accuracy of the application or evidence submitted by a dealer or lessor-retailer. (c) A director shall not be involved in the decision of a claim if the director has a financial interest in the outcome of the decision; has a financial interest in or is employed by the participant that is the subject of the claim; or has a familial or close personal relationship with the claimant or an owner, officer, director, or manager of the participant. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  141. 12207.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The recovery corporation must send the complete application and notice to the dealer or lessor-retailer within 15 days, and service may also be made by personal service or certified mail. The notice tells the recipient how to contest payment, and the DMV may suspend the license until repayment plus 10% annual interest.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12207. (a) Within 15 days of receiving a complete application, the recovery corporation shall serve a copy of the complete application and the following notice on the dealer or lessor-retailer that is the subject of the claim: ## “NOTICE” “The attached application has been made to the Consumer Motor Vehicle Recovery Corporation for payment of a claim allegedly arising out of your conduct or omission. If you wish to contest payment, you must file a written response to the application that describes any evidence that you have showing that the application is inaccurate or that payment from the fund is not authorized under Section 12200 and following of the Vehicle Code, a copy of which is provided. “The allegations stated in the attached application may constitute grounds on which disciplinary action may be taken to suspend or revoke your license. In addition, the Department of Motor Vehicles may suspend your license until you have repaid in full the amount paid by the Consumer Motor Vehicle Recovery Corporation on the attached application, plus interest at the rate of 10 percent per annum.” (b) The notice prescribed by subdivision (a), a copy of the application for payment, and a copy of this chapter shall be served on the dealer or lessor-retailer by personal service or certified mail, return receipt requested, at the department’s mailing address of record for that licensee. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  142. 12208.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    If the recovery corporation pays a claim, the payment must equal the eligible claim amount, but it cannot exceed $35,000 for one transaction.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12208. If the recovery corporation pays the claim, the amount of the payment shall be the total of the amount of the eligible claim, but in no event may the payment exceed thirty-five thousand dollars ($35,000) for a transaction. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  143. 12209.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    If the recovery corporation denies a claim, it must give written notice and reasons, and the applicant may contest the denial or seek court review if the claim is denied in whole or part.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12209. If the recovery corporation denies the claim, the recovery corporation shall notify the applicant in writing of the denial, the legal and factual bases for the denial, and the applicant’s right to contest the denial in writing within 60 days or any longer period permitted by the recovery corporation. If the applicant does not contest the denial within 60 days or an additional period reasonably requested by the consumer, the decision shall be final. The recovery corporation shall act on the applicant’s objection within 30 days. If the claim is denied in whole or in part, the applicant may seek review in the superior court of any of the following counties in which the office of the Attorney General maintains an office: Sacramento, San Francisco, Los Angeles, or San Diego. Review shall be limited to the written record before the recovery corporation and any relevant evidence that could not have been previously presented to the recovery corporation despite the applicant’s reasonable diligence. The superior court shall affirm the decision of the recovery corporation if it is supported by substantial evidence. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  144. 12210.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    After paying or rejecting a claim, the recovery corporation must notify the department and the dealer/lessor-retailer within set deadlines, and the consumer may not recover the same payment from the dealer’s bond.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12210. After the recovery corporation pays or rejects a claim, all of the following apply: (a) Immediately upon payment, the recovery corporation shall be subrogated to all of the consumer’s rights against the dealer or lessor-retailer to the extent of the amount of the payment. (b) The recovery corporation may bring an action to recover the amount of the payment plus interest at the rate of 10 percent per annum and shall be entitled to recover costs and reasonable attorney’s fees. (c) Within 10 days of paying the claim, the recovery corporation shall inform the department of the payment of the claim, the amount of the payment, and the name and address of the dealer or lessor-retailer that is the subject of the claim. Upon the department’s request, the recovery corporation shall provide the department with a copy of the claim application and other documents received by the recovery corporation in connection with the claim. (d) Within 15 days of paying or rejecting the claim, the recovery corporation shall serve the dealer or lessor-retailer that is the subject of the claim with notice of the recovery corporation’s disposition of the claim in the manner provided for service in subdivision (b) of Section 12207. (e) After the consumer receives payment of the eligible claim from the recovery corporation, the consumer shall not seek to recover the amount received from the recovery corporation for the eligible claim from the dealer’s bond required by Section 11710. Nothing in this subdivision affects any other rights the consumer may have as provided in Section 12217. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  145. 12211.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    If the recovery corporation does not have enough money to pay all eligible claims, it must pay them in the order received and hold the rest until funds are available.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12211. If the recovery corporation has insufficient funds to pay all eligible claims, the recovery corporation shall pay eligible claims in the order that the claim applications were received and shall hold the remaining claims until funds are available to pay those claims. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  146. 12212.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The recovery corporation must publicly disclose specified fiscal-year financial and governance information within set time limits, and may do so by website or email.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12212. (a) Within 30 days after the close of the fiscal year or other reasonable period established by the board of directors, the recovery corporation shall make publicly available a statement of the following information concerning the most recently concluded fiscal year: (1) The number of claims and approximate dollar amount of the claims received. (2) The total number of claims and total dollar amount of claims paid. (3) The approximate number and dollar amount of claims denied or abandoned. (4) The dollar balance in the recovery fund. (5) The dollar amount of fees received pursuant to Section 4456.3. (6) The administrative costs and expenses of the recovery corporation. (b) The recovery corporation shall make publicly available within 15 days of approval by the board of directors or other reasonable period established by the board of directors, the following information: (1) The approved minutes of meetings of the board of directors. (2) The approved estimated annual operational budget projecting the costs of operations and administration for the succeeding fiscal year, excluding the amount to be paid for claims. (3) The approved bylaws, as amended, of the recovery corporation. (c) Information may be made publicly available as required by this section by disseminating the information on an Internet Web site or providing the information by electronic mail to a person who has requested the information and provided a valid electronic mail address. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  147. 12213.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The recovery corporation must always be subject to review by the Attorney General, who may inspect its affairs and records and copy its documents.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12213. The operation of the recovery corporation shall at all times be subject to the examination and review of the Attorney General and the Attorney General’s representatives. The Attorney General and his or her representatives may at any time investigate the affairs and examine the books, accounts, records, and files used by the recovery corporation. The Attorney General and his or her representatives shall have free access to the offices, books, accounts, papers, records, files, safes, and vaults of the recovery corporation and may copy any documents of, or in the possession of, the recovery corporation. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  148. 12214.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

    Verify source ↗

    The Attorney General or a representative may decide that a recovery corporation has failed or stopped operating if one listed condition is found.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12214. The Attorney General or his or her representative may determine that the recovery corporation has failed or ceased to operate upon a finding that any one of the following has occurred with respect to the recovery corporation: (a) The recovery corporation was not created. (b) The recovery corporation is dissolved. (c) The recovery corporation ceased to operate. (d) The recovery corporation is insolvent or bankrupt. (e) The recovery corporation failed to pay its operating costs. (f) The recovery corporation failed to pay any claim or judgment in a timely manner. (g) The recovery corporation violated its articles of incorporation or any law of this state. (h) The recovery corporation invested its funds in violation of this chapter. (i) The recovery corporation has not diligently made a decision upon a claim made by a person aggrieved. (j) The recovery corporation violated any section of this chapter. (k) The recovery corporation neglected or refused to submit its books, papers, and affairs to the inspection of the Attorney General or his or her representatives. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  149. 12215.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

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    If the recovery corporation is dissolved or stops operating, its remaining assets must first be used to pay its debts and service amounts due, and any leftover assets are then distributed to participants after distribution costs.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12215. If the recovery corporation is dissolved or ceases to exist, or if the Attorney General or his or her representative makes a determination, pursuant to Section 12214, that the recovery corporation has failed or ceased to operate, all outstanding debts, obligations of the recovery corporation, and amounts due for services rendered shall first be paid from the remaining assets, including the recovery fund. The assets remaining, after settling those liabilities, shall be distributed to the participants, less the costs of that distribution. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  150. 12216.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

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    The recovery corporation must pay the Department of Justice’s costs and expenses for administering the chapter. The Department of Justice may sue to recover those costs and expenses.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12216. All costs and expenses incurred by the Department of Justice in the administration of this chapter shall be paid to the Department of Justice by the recovery corporation. The Department of Justice may institute an action for the recovery of costs and expenses incurred in the administration of this article in any court of competent jurisdiction. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  151. 12217.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. )

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    This chapter does not limit or restrict other legal actions, remedies, penalties, or procedures.

    ## Vehicle Code - VEH ## DIVISION 5. OCCUPATIONAL LICENSING AND BUSINESS REGULATIONS [11100 - 12217] ( Division 5 enacted by Stats. 1959, Ch. 3. ) ## CHAPTER 11. Consumer Recovery Fund [12200 - 12217] ( Chapter 11 added by Stats. 2007, Ch. 437, Sec. 6. ) ## 12217. Nothing in this chapter is intended to limit or restrict actions, remedies, penalties, or procedures otherwise available pursuant to any other provision of law. (Added by Stats. 2007, Ch. 437, Sec. 6. Effective January 1, 2008.)
  152. 12500.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A person generally may not drive a motor vehicle, motorcycle, motor-driven cycle, motorized bicycle, or certain vehicles in an offstreet parking facility unless they have the required valid driver’s license, endorsement, or certification, subject to stated exemptions.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12500. (a) A person may not drive a motor vehicle upon a highway, unless the person then holds a valid driver’s license issued under this code, except those persons who are expressly exempted under this code. (b) A person may not drive a motorcycle, motor-driven cycle, or motorized bicycle upon a highway, unless the person then holds a valid driver’s license or endorsement issued under this code for that class, except those persons who are expressly exempted under this code, or those persons specifically authorized to operate motorized bicycles or motorized scooters with a valid driver’s license of any class, as specified in subdivision (h) of Section 12804.9. (c) A person may not drive a motor vehicle in or upon any offstreet parking facility, unless the person then holds a valid driver’s license of the appropriate class or certification to operate the vehicle. As used in this subdivision, “offstreet parking facility” means any offstreet facility held open for use by the public for parking vehicles and includes any publicly owned facilities for offstreet parking, and privately owned facilities for offstreet parking where no fee is charged for the privilege to park and which are held open for the common public use of retail customers. (d) A person may not drive a motor vehicle or combination of vehicles that is not of a type for which the person is licensed. (e) A motorized scooter operated on public streets shall at all times be equipped with an engine that complies with the applicable State Air Resources Board emission requirements. (Amended by Stats. 2007, Ch. 630, Sec. 3. Effective January 1, 2008.)
  153. 12501.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Certain people do not need a driver’s license when operating specific vehicles in the listed situations.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12501. The following persons are not required to obtain a driver’s license: (a) An officer or employee of the United States, while operating a motor vehicle owned or controlled by the United States on the business of the United States, except when the motor vehicle being operated is a commercial motor vehicle, as defined in Section 15210. (b) Any person while driving or operating implements of husbandry incidentally operated or moved over a highway, except as provided in Section 36300 or 36305. (c) Any person driving or operating an off-highway motor vehicle subject to identification, as defined in Section 38012, while driving or operating such motor vehicle as provided in Section 38025. Nothing in this subdivision authorizes operation of a motor vehicle by a person without a valid driver’s license upon any offstreet parking facility, as defined in subdivision (c) of Section 12500. (Amended by Stats. 1990, Ch. 1360, Sec. 10.)
  154. 12502.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section lists several cases where a person may drive in California without a driver’s license, and one case where a commercial driver does not have to carry a medical examiner’s certificate.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12502. (a) The following persons may operate a motor vehicle in this state without obtaining a driver’s license under this code: (1) A nonresident over the age of 18 years having in his or her immediate possession a valid driver’s license issued by a foreign jurisdiction of which he or she is a resident, except as provided in Section 12505. (2)A nonresident, 21 years of age or older, if transporting hazardous material, as defined in Section 353, in a commercial vehicle, having in his or her immediate possession, a valid license with the appropriate endorsement issued by another state or other jurisdiction that is recognized by the department, or a Canadian driver’s license and a copy of his or her current training certificate to transport hazardous material that complies with all federal laws and regulations with respect to hazardous materials, both of which shall be in his or her immediate possession. (3) A nonresident having in his or her immediate possession a valid driver’s license, issued by the Diplomatic Motor Vehicle Office of the Office of Foreign Missions of the United States Department of State, for the type of motor vehicle or combination of vehicles that the person is operating. (b) (1) A driver required to have a commercial driver’s license under Part 383 of Title 49 of the Code of Federal Regulations who submits a current medical examiner’s certificate to the licensing state in accordance with Section 383.71(h) of Subpart E of Part 383 of Title 49 of the Code of Federal Regulations, documenting that he or she meets the physical qualification requirements of Section 391.41 of Subpart E of Part 391 of Title 49 of the Code of Federal Regulations, is not required to carry on his or her person the medical examiner’s certificate or a copy of that certificate. (2) A driver may use the date-stamped receipt, given to the driver by the licensing state agency, for up to 15 days after the date stamped on the receipt, as proof of medical certification. (c) A nonresident possessing a medical certificate in accordance with subdivision (b) shall comply with any restriction of the medical certificate issued to that nonresident. (d) This section shall become operative on January 31, 2014. (Repealed (in Sec. 2) and added by Stats. 2012, Ch. 670, Sec. 2.5. (AB 2188) Effective January 1, 2013. Section operative January 31, 2014, by its own provisions.)
  155. 12503.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Some nonresidents age 18 or older may drive their own foreign vehicle for up to 30 days without getting a license under this code, if their home state or country does not require driver licensing.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12503. A nonresident over the age of 18 years whose home state or country does not require the licensing of drivers may operate a foreign vehicle owned by him for not to exceed 30 days without obtaining a license under this code. (Amended by Stats. 1971, Ch. 1748.)
  156. 12504.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Nonresident drivers age 16 to under 18 may drive for up to 10 days after entering the state without a driver’s license, unless subdivision (b) applies.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12504. (a) Sections 12502 and 12503 apply to any nonresident over the age of 16 years but under the age of 18 years. The maximum period during which that nonresident may operate a motor vehicle in this state without obtaining a driver’s license is limited to a period of 10 days immediately following the entry of the nonresident into this state except as provided in subdivision (b) of this section. (b) Any nonresident over the age of 16 years but under the age of 18 years who is a resident of a foreign jurisdiction which requires the licensing of drivers may continue to operate a motor vehicle in this state after 10 days from his or her date of entry into this state if he or she meets both the following: (1) He or she has a valid driver’s license, issued by the foreign jurisdiction, in his or her immediate possession. (2) He or she has been issued and has in his or her immediate possession a nonresident minor’s certificate, which the department issues to a nonresident minor who holds a valid driver’s license issued to him or her by his or her home state or country, and who files proof of financial responsibility. (c) Whenever any of the conditions for the issuance of a nonresident minor’s certificate cease to exist, the department shall cancel the certificate and require the minor to surrender it to the department. (Amended by Stats. 1992, Ch. 974, Sec. 4. Effective September 28, 1992.)
  157. 12505.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section defines residency as domicile for driver licensing, requires California residency for a commercial driver’s license, and sets special rules for temporary or foreign-license operation and nondomiciled commercial licenses.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12505. (a) (1) For purposes of this division only and notwithstanding Section 516, residency shall be determined as a person’s state of domicile. “State of domicile” means the state where a person has their true, fixed, and permanent home and principal residence and to which the person has manifested the intention of returning whenever they are absent. Prima facie evidence of residency for driver’s licensing purposes includes, but is not limited to, the following: (A) Address where registered to vote. (B) Payment of resident tuition at a public institution of higher education. (C) Filing a homeowner’s property tax exemption. (D) Other acts, occurrences, or events that indicate presence in the state is more than temporary or transient. (2) California residency is required of a person in order to be issued a commercial driver’s license under this code. (b) The presumption of residency in this state may be rebutted by satisfactory evidence that the licensee’s primary residence is in another state. (c) A person entitled to an exemption under Section 12502, 12503, or 12504 may operate a motor vehicle in this state for not to exceed 10 days from the date the person establishes residence in this state, except that a person shall not operate a motor vehicle for employment in this state after establishing residency without first obtaining a license from the department. (d) If the State of California is decertified by the federal government and prohibited from issuing an initial, renewal, or upgraded commercial driver’s license pursuant to Section 384.405 of Title 49 of the Code of Federal Regulations, the following applies: (1) An existing commercial driver’s license issued pursuant to this code prior to the date that the state is notified of its decertification shall remain valid until its expiration date. (2) A person who is a resident of this state may obtain a nondomiciled commercial learner’s permit or commercial driver’s license from any state that elects to issue a nondomiciled commercial learner’s permit or commercial driver’s license and that complies with the testing and licensing standards contained in subparts F, G, and H of Part 383 of Title 49 of the Code of Federal Regulations. (3) For the purposes of this subdivision, a nondomiciled commercial learner’s permit or commercial driver’s license is a commercial learner’s permit or commercial driver’s license issued by a state to an individual domiciled in a foreign country or in another state. (e) The department may issue a nondomiciled commercial learner’s permit or nondomiciled commercial driver’s license to a person who is domiciled in a state or jurisdiction that has been decertified by the federal government or not determined to be in compliance with the testing and licensing standards contained in subparts F, G, and H of Part 383 of Title 49 of the Code of Federal Regulations. (f) Subject to Section 12504, a person over the age of 16 years who is a resident of a foreign jurisdiction other than a state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or Canada, having a valid driver’s license issued to the person by any other foreign jurisdiction may operate a motor vehicle in this state without obtaining a license from the department, unless the department determines that the foreign jurisdiction does not meet the licensing standards imposed by this code. (g) A person who is 18 years of age or older and in possession of a valid commercial learner’s permit or commercial driver’s license issued by a foreign jurisdiction that meets the licensing standards contained in subparts F, G, and H of Part 383 of Title 49 of the Code of Federal Regulations shall be granted reciprocity to operate vehicles of the appropriate class on the highways of this state. (h) A person from a foreign jurisdiction that does not meet the licensing standards contained in subparts F, G, and H of Part 383 of Title 49 of the Code of Federal Regulations shall obtain a commercial learner’s permit or commercial driver’s license from the department before operating on the highways a motor vehicle for which a commercial driver’s license is required, as described in Section 12804.9. The medical examination form required for issuance of a commercial driver’s license shall be completed by a health care professional, as defined in paragraph (2) of subdivision (a) of Section 12804.9, who is licensed, certified, or registered to perform physical examinations in the United States of America. This subdivision does not apply to (1) drivers of schoolbuses operated in California on a trip for educational purposes or (2) drivers of vehicles used to provide the services of a local public agency. (i) This section does not authorize the employment of a person in violation of Section 12515. (Amended by Stats. 2022, Ch. 295, Sec. 11. (AB 2956) Effective January 1, 2023.)
  158. 12506.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue temporary driver’s licenses to certain applicants, renewals, or licensees needing changes, and the temporary license can allow driving for 60 days if carried and while the department reviews the application.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12506. The department may issue a temporary driver’s license to any person applying for a driver’s license, to any person applying for renewal of a driver’s license, or to any licensee whose license is required to be changed, added to, or modified. Notwithstanding paragraph (3) of subdivision (a) of Section 12805, the department may issue a temporary driver’s license to an applicant who has previously been licensed in this state or in any other state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or the Dominion of Canada, notwithstanding that the applicant has failed the written examination on the person’s first attempt. A temporary license permits the operation of a motor vehicle upon the highways for a period of 60 days, if the licensee has the temporary license in his or her immediate possession, and while the department is completing its investigation and determination of all facts relative to the applicant’s right to receive a license. The temporary license is invalid when the applicant’s license has been issued or refused. (Amended by Stats. 2016, Ch. 339, Sec. 7. (SB 838) Effective September 13, 2016.)
  159. 12508.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue a shorter-term driver’s license in individual safety-related cases, and may later extend it without charge, but the total term cannot exceed a regular license term.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12508. When in the opinion of the department it would be in the interest of safety, the department may issue, in individual cases, to any applicant for a driver’s license, a license limited in duration to less than the regular term. Upon the expiration of a limited term license the department may extend its duration for an additional period without fee but the duration of the license and extensions shall not exceed the term of a regular license. (Enacted by Stats. 1959, Ch. 3.)
  160. 12509.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue an instruction permit to qualified applicants meeting listed age or training conditions, and it may further restrict permits. A permit can allow limited driving, but only under the section’s supervision and vehicle restrictions.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12509. (a) Except as otherwise provided in subdivision (f) of Section 12514, the department, for good cause, may issue an instruction permit to a physically and mentally qualified person who meets one of the following requirements and who applies to the department for an instruction permit: (1) Is 15 years and 6 months of age or older, and has successfully completed approved courses in automobile driver education and driver training as provided in paragraph (3) of subdivision (a) of Section 12814.6. (2) Is 15 years and 6 months of age or older, and has successfully completed an approved course in automobile driver education and is taking driver training as provided in paragraph (3) of subdivision (a) of Section 12814.6. (3) Is 15 years and 6 months of age and enrolled and participating in an integrated automobile driver education and training program as provided in subparagraph (B) of paragraph (3) of subdivision (a) of Section 12814.6. (4) Is over 16 years of age and is applying for a restricted driver’s license pursuant to Section 12814.7. (5) Is over 17 years and 6 months of age. (b) The applicant shall qualify for, and be issued, an instruction permit within 12 months from the date of the application. (c) An instruction permit issued pursuant to subdivision (a) shall entitle the applicant to operate a vehicle, subject to the limitations imposed by this section and any other provisions of law, upon the highways for a period not exceeding 24 months from the date of the application. (d) Except as provided in Section 12814.6, a person, while having in their immediate possession a valid permit issued pursuant to paragraphs (1) to (3), inclusive, of, and paragraph (5) of, subdivision (a), may operate a motor vehicle, other than a motorcycle, motorized scooter, or a motorized bicycle, when accompanied by, and under the immediate supervision of, a California-licensed driver with a valid license of the appropriate class who is 18 years of age or over and whose driving privilege is not subject to probation. An accompanying licensed driver at all times shall occupy a position within the driver’s compartment that would enable the accompanying licensed driver to assist the person in controlling the vehicle as may be necessary to avoid a collision and to provide immediate guidance in the safe operation of the vehicle. (e) A person, while having in their immediate possession a valid permit issued pursuant to paragraph (4) of subdivision (a), may only operate a government-owned motor vehicle, other than a motorcycle, motorized scooter, or a motorized bicycle, when taking driver training instruction administered by the California National Guard. (f) The department may also issue an instruction permit to a person who has been issued a valid driver’s license to authorize the person to obtain driver training instruction and to practice that instruction in order to obtain another class of driver’s license or an endorsement. (g) The department may further restrict permits issued under subdivision (a) as it may determine to be appropriate to ensure the safe operation of a motor vehicle by the permittee. (Amended by Stats. 2022, Ch. 295, Sec. 12. (AB 2956) Effective January 1, 2023.)
  161. 12509.5.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    People must get an instruction permit before operating certain two-wheel vehicles, and younger applicants must meet extra training and exam requirements.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12509.5. (a) A person shall obtain an instruction permit issued pursuant to this section before operating, or being issued a class M1 or M2 driver’s license to operate, a two-wheel motorcycle, motor-driven cycle, motorized bicycle, moped, or bicycle with an attached motor. The person shall meet the following requirements to obtain an instruction permit for purposes of this section: (1) If age 15 years and 6 months or older, but under the age of 18 years, the applicant shall meet all of the following requirements: (A) Have a valid class C license or complete driver education and training pursuant to paragraph (3) of subdivision (a) of Section 12814.6. (B) Successfully complete a motorcyclist safety program that is operated pursuant to Article 2 (commencing with Section 2930) of Chapter 5 of Division 2. (C) Pass the motorcycle driver’s written exam. (2) If 18 years of age or older, but under 21 years of age, the applicant shall meet both of the following requirements: (A) Successfully complete a motorcyclist safety program that is operated pursuant to Article 2 (commencing with Section 2930) of Chapter 5 of Division 2. (B) Pass the motorcycle driver’s written exam. (3) If 21 years of age or older, pass the motorcycle driver’s written exam. (b) A person described in paragraph (1) or (2) of subdivision (a) shall hold an instruction permit issued pursuant to this section for a minimum of six months before being issued a class M1 or M2 license. (c) A person issued an instruction permit pursuant to this section shall not operate a two-wheel motorcycle, motor-driven cycle, motorized bicycle, moped, or bicycle with an attached motor during the hours of darkness, shall stay off any freeways that have full control of access and have no crossings at grade, and shall not carry any passenger except an instructor licensed under Chapter 1 (commencing with Section 11100) of Division 5 or a qualified instructor as defined in Section 41907 of the Education Code. (d) An instruction permit issued pursuant to this section shall be valid for a period not exceeding 24 months from the date of application. (e) The department may perform, during regularly scheduled computer system maintenance and upgrades, any necessary software updates related to the changes made by the addition, during the 2009–10 Regular Session, of this section. (Amended by Stats. 2019, Ch. 636, Sec. 6. (AB 1810) Effective January 1, 2020.)
  162. 12511.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A person must not possess or otherwise control more than one driver’s license.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12511. No person shall have in his or her possession or otherwise under his or her control more than one driver’s license. (Amended by Stats. 1988, Ch. 1509, Sec. 4.)
  163. 12512.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A driving license generally may not be issued to someone under 18, except as allowed by Sections 12513, 12514, and 12814.6.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12512. Except as provided in Sections 12513, 12514, and 12814.6, no license to drive shall be issued to a person under the age of 18 years. (Added by Stats. 2000, Ch. 596, Sec. 6. Effective January 1, 2001.)
  164. 12513.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    The department may issue junior permits to eligible 14- to under-18-year-olds, and it must add restrictions to those permits based on the conditions and area of use.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12513. (a) Upon application, successful completion of tests and compliance with Sections 17700 to 17705, inclusive, the department may issue a junior permit to any person 14 years of age, but less than 18, who establishes eligibility as required by this section. A person is eligible when, in the opinion of the department, any one or more of the following circumstances exist: School or other transportation facilities are inadequate for regular attendance at school and at activities authorized by the school. The application for a junior permit shall be accompanied by a signed statement from the school principal verifying such facts. A junior permit issued under this subsection shall be restricted to operating a vehicle from residence to the school and return. Reasonable transportation facilities are inadequate and operation of a vehicle by a minor is necessary due to illness of a family member. The application shall be accompanied by a signed statement from a physician familiar with the condition, containing a diagnosis and probable date when sufficient recovery will have been made to terminate the emergency. Transportation facilities are inadequate, and use of a motor vehicle is necessary in the transportation to and from the employment of the applicant and the applicant’s income from such employment is essential in the support of the family, or where the applicant’s operation of a motor vehicle is essential to an enterprise from which an appreciable portion of the income of the family will be derived. The application shall be accompanied by a signed statement from the parents or the guardian, setting forth the reasons a permit is necessary under this subsection. (b) The existence of public transportation at reasonable intervals within one mile of the residence of the applicant may be considered adequate grounds for refusal of a junior permit. (c) The department shall impose restrictions upon junior permits appropriate to the conditions and area under which they are intended to be used. (Amended by Stats. 1969, Ch. 947, Sec. 1.)
  165. 12514.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Junior permits and instruction permits have short validity limits, and the department can or must revoke or cancel permits in specified circumstances.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12514. (a) Junior permits issued pursuant to Section 12513 shall not be valid for a period exceeding that established on the original request as the approximate date the minor’s operation of a vehicle will no longer be necessary. In any event, no permit shall be valid on or after the 18th birthday of the applicant. (b) The department may revoke any permit when to do so is necessary for the welfare of the minor or in the interests of safety. (c) If conditions or location of residence, which required the minor’s operation of a vehicle, change prior to expiration of the permit, the department may cancel the permit. (d) Upon a determination that the permittee has operated a vehicle in violation of restrictions, the department shall revoke the permit. (e) A junior permit is a form of driver’s license that shall include all information required by subdivision (a) of Section 12811 except for an engraved picture or photograph of the permittee, and is subject to all provisions of this code applying to driver’s licenses, except as otherwise provided in this section and Section 12513. (f) An instruction permit valid for a period of not more than six months may be issued after eligibility has been established under Section 12513. (g) The department shall cancel any permit six months from the date of issuance unless the permittee has complied with one of the conditions prescribed by paragraph (3) of subdivision (a) of Section 12814.6. (Amended by Stats. 2000, Ch. 1035, Sec. 15. Effective January 1, 2001.)
  166. 12515.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Employers may not hire people under 18 to drive for compensation, and people under 21 may not be hired to drive or drive certain interstate or hazardous-material vehicles.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12515. (a) No person under the age of 18 years shall be employed for compensation by another for the purpose of driving a motor vehicle on the highways. (b) No person under the age of 21 years shall be employed for compensation by another to drive, and no person under the age of 21 years may drive a motor vehicle, as defined in Section 34500 or subdivision (b) of Section 15210, that is engaged in interstate commerce, or any motor vehicle that is engaged in the interstate or intrastate transportation of hazardous material, as defined in Section 353. (Amended by Stats. 1988, Ch. 1509, Sec. 5.)
  167. 12516.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    People under 18 may not drive a school bus transporting pupils to or from school.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12516. It is unlawful for any person under the age of 18 years to drive a school bus transporting pupils to or from school. (Enacted by Stats. 1959, Ch. 3.)
  168. 12517.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    People operating school buses or school pupil activity buses must carry the required driver’s license, and certain school transport trips also require a department-issued certificate.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517. (a) (1) A person may not operate a schoolbus while transporting pupils unless that person has in his or her immediate possession a valid driver’s license for the appropriate class of vehicle to be driven endorsed for schoolbus and passenger transportation. (2) When transporting one or more pupils at or below the 12th-grade level to or from a public or private school or to or from public or private school activities, the person described in paragraph (1) shall have in his or her immediate possession a certificate issued by the department to permit the operation of a schoolbus. (b) A person may not operate a school pupil activity bus unless that person has in his or her immediate possession a valid driver’s license for the appropriate class of vehicle to be driven endorsed for passenger transportation. When transporting one or more pupils at or below the 12th-grade level to or from public or private school activities, the person shall also have in his or her immediate possession a certificate issued by the department to permit the operation of school pupil activity buses. (c) The applicant for a certificate to operate a schoolbus or school pupil activity bus shall meet the eligibility and training requirements specified for schoolbus and school pupil activity busdrivers in this code, the Education Code, and regulations adopted by the Department of the California Highway Patrol, and, in addition to the fee authorized in Section 2427, shall pay a fee of twenty-five dollars ($25) with the application for issuance of an original certificate, and a fee of twelve dollars ($12) for the renewal of that certificate. (Amended by Stats. 2006, Ch. 574, Sec. 7. Effective January 1, 2007.)
  169. 12517.1.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section defines “schoolbus accident” and requires the California Highway Patrol to investigate such accidents, with a limited exception for certain private-property property-damage-only incidents.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517.1. (a) A “schoolbus accident” means any of the following: (1) A motor vehicle accident resulting in property damage in excess of one thousand dollars ($1,000), or personal injury, on public or private property, and involving a schoolbus, youth bus, school pupil activity bus, or general public paratransit vehicle transporting a pupil. (2) A collision between a vehicle and a pupil or a schoolbus driver while the pupil or driver is crossing the highway when the schoolbus flashing red signal lamps are required to be operated pursuant to Section 22112 or when the schoolbus is stopped for the purpose of loading or unloading pupils. (3) Injury of a pupil inside a vehicle described in paragraph (1) as a result of acceleration, deceleration, or other movement of the vehicle. (b) The Department of the California Highway Patrol shall investigate all schoolbus accidents, except that accidents involving only property damage and occurring entirely on private property shall be investigated only if they involve a violation of this code. (c) This section shall become operative on January 1, 2017. (Repealed (in Sec. 23) and added by Stats. 2015, Ch. 451, Sec. 24. (SB 491) Effective January 1, 2016. Section operative January 1, 2017, by its own provisions.)
  170. 12517.2.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Certain applicants and schoolbus drivers must provide or undergo medical examinations and submit reports on approved forms.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517.2. (a) Applicants for an original or renewal certificate to drive a schoolbus, school pupil activity bus, youth bus, general public paratransit vehicle, or farm labor vehicle shall submit a report of a medical examination of the applicant given not more than two years prior to the date of the application by a physician licensed to practice medicine, a licensed advanced practice registered nurse qualified to perform a medical examination, a licensed physician assistant, or a licensed doctor of chiropractic listed on the most current National Registry of Certified Medical Examiners, as adopted by the United States Department of Transportation, as published by the notice in the Federal Register, Volume 77, Number 77, Friday, April 20, 2012, on pages 24104 to 24135, inclusive, and pursuant to Section 391.42 of Title 49 of the Code of Federal Regulations. The report shall be on a form approved by the department. (b) Schoolbus drivers, within the same month of reaching 65 years of age and each 12th month thereafter, shall undergo a medical examination, pursuant to Section 12804.9, and shall submit a report of that medical examination on a form as specified in subdivision (a). (Amended by Stats. 2013, Ch. 160, Sec. 1. (AB 722) Effective January 1, 2014.)
  171. 12517.3.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Applicants for certain school and ambulance driving certificates must provide fingerprints or a fingerprint card, and the involved agencies must process and share the fingerprint information within stated time limits.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517.3. (a) (1) An applicant for an original certificate to drive a schoolbus, school pupil activity bus, youth bus, or general public paratransit vehicle shall be fingerprinted by the Department of the California Highway Patrol, on a form provided or approved by the Department of the California Highway Patrol for submission to the Department of Justice, utilizing the Applicant Expedite Service or an electronic fingerprinting system. (2) An applicant fingerprint form shall be processed and returned to the office of the Department of the California Highway Patrol from which it originated not later than 15 working days from the date on which the fingerprint form was received by the Department of Justice, unless circumstances, other than the administrative duties of the Department of Justice, warrant further investigation. (3) Applicant fingerprints that are submitted by utilizing an electronic fingerprinting system shall be processed and returned to the appropriate office of the Department of the California Highway Patrol within three working days. (4) The commissioner may utilize the California Law Enforcement Telecommunications System to conduct a preliminary criminal and driver history check to determine an applicant’s eligibility to hold an original or renewal certificate to drive a schoolbus, school pupil activity bus, youth bus, or general public paratransit vehicle. (b) (1) Notwithstanding subdivision (a), an applicant for an original certificate to drive a schoolbus, school pupil activity bus, youth bus, or general public paratransit vehicle may be fingerprinted by a public law enforcement agency, a school district, or a county office of education utilizing an electronic fingerprinting system with terminals managed by the Department of Justice. (2) The Department of Justice shall provide the fingerprint information processed pursuant to this subdivision to the appropriate office of the Department of the California Highway Patrol within three working days of receipt of the information. (3) An applicant for an original certificate to drive an ambulance shall submit a completed fingerprint card to the department. (Amended by Stats. 2006, Ch. 311, Sec. 7. Effective January 1, 2007.)
  172. 12517.4.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    This section sets rules for issuing driver certificates for certain vehicle types, including eligibility checks, exams, certificate validity, and driving restrictions.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517.4. This section governs the issuance of a certificate to drive a schoolbus, school pupil activity bus, youth bus, general public paratransit vehicle, or farm labor vehicle. (a) The driver certificate shall be issued only to applicants meeting all applicable provisions of this code and passing the examinations prescribed by the department and the Department of the California Highway Patrol. The examinations shall be conducted by the Department of the California Highway Patrol, pursuant to Sections 12517, 12519, 12522, 12523, and 12523.5. (b) A temporary driver certificate shall be issued by the Department of the California Highway Patrol after an applicant has cleared a criminal history background check by the Department of Justice and, if applicable, the Federal Bureau of Investigation, and has passed the examinations and meets all other applicable provisions of this code. (c) A permanent driver’s certificate shall be issued by the department after an applicant has passed all tests and met all applicable provisions of this code. Certificates are valid for a maximum of five years and shall expire on the fifth birthday following the issuance of an original certificate or the expiration of the certificate renewed. (d) A holder of a certificate may not violate any restriction placed on the certificate. Depending upon the type of vehicle used in the driving test and the abilities and physical condition of the applicant, the Department of the California Highway Patrol and the department may place restrictions on a certificate to assure the safe operation of a motor vehicle and safe transportation of passengers. These restrictions may include, but are not limited to, all of the following: (1) Automatic transmission only. (2) Hydraulic brakes only. (3) Type 2 bus only. (4) Conventional or type 2 bus only. (5) Two-axle motor truck or passenger vehicle only. (e) A holder of a certificate may not drive a motor vehicle equipped with a two-speed rear axle unless the certificate is endorsed: “May drive vehicle with two-speed rear axle.” (f) This section shall become operative on September 20, 2005. (Amended by Stats. 2004, Ch. 952, Sec. 5. Effective January 1, 2005. Amended version operative September 20, 2005, pursuant to earlier operation of new subdivision (f).)
  173. 12517.45.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A person may not drive certain vehicles while carrying school pupils unless they have the required license, certificate, and parental authorization, and the vehicle has passed the required inspection.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517.45. (a) A person shall not operate a motor vehicle described in subdivision (k) of Section 545 while transporting school pupils at or below the 12th-grade level to or from a public or private school or to or from public or private school activities, unless all of the following requirements are met: (1) The person has in his or her immediate possession all of the following: (A) A valid driver’s license of a class appropriate to the vehicle driven and that is endorsed for passenger transportation. (B) Either a certificate to drive a schoolbus as described in Section 40082 of the Education Code, or a certificate to drive a school pupil activity bus as described in Section 40083 of the Education Code, issued by the department in accordance with eligibility and training requirements specified by the department, the State Department of Education, and the Department of the California Highway Patrol. (C) A parental authorization form for each pupil signed by a parent or a legal guardian of the pupil that gives permission for that pupil to be transported to or from the school or school-related activity. (2) (A) The motor vehicle has passed an annual inspection conducted by the Department of the California Highway Patrol and is in compliance with the charter-party carrier’s responsibilities under Section 5374 of the Public Utilities Code. (B) The Department of the California Highway Patrol may charge a charter-party carrier a reasonable fee sufficient to cover the costs incurred by the Department of the California Highway Patrol in conducting the annual inspection of a motor vehicle. (b) A driver of a motor vehicle described in subdivision (k) of Section 545 shall comply with the duties specified in subdivision (a) of Section 5384.1 of the Public Utilities Code. (Added by Stats. 2008, Ch. 649, Sec. 4. Effective January 1, 2009.)
  174. 12517.5.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A paratransit driver may not operate the vehicle unless they carry a valid appropriate driver’s license and complete the required annual training; the employer must keep training records and show them on demand to the California Highway Patrol.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12517.5. A person who is employed as a driver of a paratransit vehicle shall not operate that vehicle unless the person meets both of the following requirements: (a) Has in his or her immediate possession a valid driver’s license of a class appropriate to the vehicle driven. (b) Successfully completes, during each calendar year, four hours of training administered by, or at the direction of, his or her employer or the employer’s agent on the safe operation of paratransit vehicles and four hours of training on the special transportation needs of the persons he or she is employed to transport. This subdivision may be satisfied if the driver receives transportation training or a certificate, or both, pursuant to Section 40082, 40083, 40085, 40085.5, or 40088 of the Education Code. The employer shall maintain a record of the current training received by each driver in his or her employ and shall present that record on demand to any authorized representative of the Department of the California Highway Patrol. (Amended by Stats. 2002, Ch. 664, Sec. 217. Effective January 1, 2003.)
  175. 12518.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Some nonresident armed forces minors may drive in the state for up to 60 days after entry without getting a driver’s license or nonresident minor’s certificate.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12518. The provisions of Section 12504 shall apply to any nonresident who is under the age of 18 years and who is a member of the armed forces of the United States on active duty within this state, except that the maximum period during which such nonresident may operate a motor vehicle in this state without obtaining a driver’s license or a nonresident minor’s certificate shall be limited to a period of 60 days immediately following the entry of such nonresident into this state. (Amended by Stats. 1971, Ch. 1748.)
  176. 12519.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A person may not operate a farm labor vehicle unless they have the required driver’s license and, when carrying farmworker passengers, the required certificate.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12519. (a) No person shall operate a farm labor vehicle unless the person has in his or her possession a driver’s license for the appropriate class of vehicle to be driven, endorsed for passenger transportation, and, when transporting one or more farmworker passengers, a certificate issued by the department to permit the operation of farm labor vehicles. (b) The applicants shall present evidence that they have successfully completed the driver training course developed by the Department of Education pursuant to Section 40081 of the Education Code, and approved by the Department of Motor Vehicles and the Department of the California Highway Patrol before a permanent certificate will be issued. (c) The certificate shall be issued only to applicants qualified by examinations prescribed by the Department of Motor Vehicles and the Department of the California Highway Patrol and upon payment of a fee of twelve dollars ($12) to the Department of the California Highway Patrol.The examinations shall be conducted by the Department of the California Highway Patrol. (d) A person holding a valid certificate to permit the operation of a farm labor vehicle, issued prior to January 1, 1991, shall not be required to reapply for a certificate to satisfy any additional requirements imposed by the act adding this subdivision until the certificate he or she holds expires or is canceled or revoked. (Amended by Stats. 1990, Ch. 1360, Sec. 17.)
  177. 12520.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Tow truck drivers must carry the right California driver’s license and a tow truck driver certificate before operating a tow truck.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12520. (a) No person employed as a tow truck driver, as defined in Section 2430.1, shall operate a tow truck unless that person has, in his or her immediate possession, a valid California driver’s license of an appropriate class for the vehicle to be driven, and a tow truck driver certificate issued by the department or a temporary tow truck driver certificate issued by the Department of the California Highway Patrol, to permit the operation of the tow truck. (b) When notified that the applicant has been cleared through the Department of Justice or the Federal Bureau of Investigation, or both, and if the applicant meets all other applicable provisions of this code, the department shall issue a permanent tow truck driver certificate. The permanent tow truck driver certificate shall be valid for a maximum of five years and shall expire on the same date as that of the applicant’s driver’s license. (Amended by Stats. 1996, Ch. 1043, Sec. 2. Effective January 1, 1997.)
  178. 12521.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    A tour bus operator must wear a safety belt while operating the bus and report any tour bus accidents to the Department of the California Highway Patrol.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12521. An operator of a tour bus shall, at all times when operating the tour bus, do all the following: (a) Use a safety belt. (b) Report any accidents involving the tour bus to the Department of the California Highway Patrol. (Repealed and added by Stats. 1990, Ch. 1360, Sec. 22.5.)
  179. 12522.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Schoolbus and youth bus drivers must pass a first-aid examination unless they qualify for a waiver.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12522. (a) Every person who operates a schoolbus or youth bus in the transportation of school pupils shall, in addition to any other requirement for a schoolbus or youth bus driver’s certificate, qualify by an examination on first aid practices deemed necessary for schoolbus operators or youth bus operators. Standards for examination shall be determined by the Emergency Medical Services Authority after consultation with the State Department of Education, the Department of Motor Vehicles, and the Department of the California Highway Patrol. The local school authority employing the applicant shall provide a course of instruction concerning necessary first aid practices. (b) The Department of the California Highway Patrol shall conduct the first aid examination as part of the examination of applicants for a schoolbus or youth bus driver’s certificate and shall certify to the Department of Motor Vehicles that the applicant has satisfactorily demonstrated his or her qualifications in first aid practices, knowledge of schoolbus or youth bus laws and regulations, and ability to operate a schoolbus or youth bus. The first aid certifications shall be valid for the term of the schoolbus or youth bus driver’s certificate. (c) The first aid examination may be waived if the applicant possesses either of the following minimum qualifications: (1) A current first aid certificate issued by the American Red Cross or by an organization whose first aid training program is at least equivalent to the American Red Cross first aid training program, as determined by the Emergency Medical Services Authority. The Emergency Medical Services Authority may charge a fee, sufficient to cover its administrative costs of approval, to an organization that applies to have its first aid training program approved for purposes of this paragraph. (2) A current license as a physician and surgeon, osteopathic physician and surgeon, or registered nurse, or a current certificate as a physician’s assistant or emergency medical technician. The first aid certificate or license shall be maintained throughout the term of the schoolbus or youth bus driver’s certificate and shall be presented upon demand of any traffic officer. The schoolbus or youth bus driver’s certificate shall not be valid during any time that the driver fails to maintain and possess that license or certificate after the first aid examination has been waived. (Amended by Stats. 1993, Ch. 226, Sec. 15. Effective January 1, 1994.)
  180. 12523.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Youth bus drivers must carry the right license and certificate, complete required training, follow in-service safety rules, and renew training proof when renewing the certificate.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12523. (a) No person shall operate a youth bus without having in possession a valid driver’s license of the appropriate class, endorsed for passenger transportation and a certificate issued by the department to permit the operation of a youth bus. (b) Applicants for a certificate to drive a youth bus shall present evidence that they have successfully completed a driver training course administered by or at the direction of their employer consisting of a minimum of 10 hours of classroom instruction covering applicable laws and regulations and defensive driving practices and a minimum of 10 hours of behind-the-wheel training in a vehicle to be used as a youth bus. Applicants seeking to renew a certificate to drive a youth bus shall present evidence that they have received two hours of refresher training during each 12 months of driver certificate validity. (c) The driver certificate shall be issued only to applicants qualified by examinations prescribed by the Department of Motor Vehicles and the Department of the California Highway Patrol, and upon payment of a fee of twenty-five dollars ($25) for an original certificate and twelve dollars ($12) for the renewal of that certificate to the Department of the California Highway Patrol. The examinations shall be conducted by the Department of the California Highway Patrol. The Department of Motor Vehicles may deny, suspend, or revoke a certificate valid for driving a youth bus for the causes specified in this code or in regulations adopted pursuant to this code. (d) An operator of a youth bus shall, at all times when operating a youth bus, do all of the following: (1) Use seat belts. (2) Refrain from smoking tobacco products. (3) Report any accidents reportable under Section 16000 to the Department of the California Highway Patrol. (e) A person holding a valid certificate to permit the operation of a youth bus, issued prior to January 1, 1991, shall not be required to reapply for a certificate to satisfy any additional requirements imposed by the act adding this subdivision until the certificate he or she holds expires or is canceled or revoked. (f) For purposes of this section, “smoking” has the same meaning as in subdivision (c) of Section 22950.5 of the Business and Professions Code. (g) For purposes of this section, “tobacco product” means a product or device as defined in subdivision (d) of Section 22950.5 of the Business and Professions Code. (Amended by Stats. 2016, 2nd Ex. Sess., Ch. 7, Sec. 27. (SB 5 2x) Effective June 9, 2016.)
  181. 12523.5.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    People operating a general public paratransit vehicle must carry the required driver’s license and certificate, and operators must follow seatbelt, smoking, and accident-reporting rules.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12523.5. (a) No person shall operate a general public paratransit vehicle unless he or she has in his or her possession a valid driver’s license of the appropriate class endorsed for passenger transportation when operating a vehicle designed, used, or maintained for carrying more than 10 persons including the driver and either (1) a certificate issued by the department to permit the operation of a general public paratransit vehicle, or (2) a certificate issued by the department to drive a schoolbus or school pupil activity bus pursuant to Section 12517. (b) Applicants for a certificate to drive a general public paratransit vehicle shall pay a fee to the Department of the California Highway Patrol of twenty-five dollars ($25) for an original certificate and twelve dollars ($12) for a renewal certificate. Applicants for an original certificate shall present evidence that they have successfully completed a driver training course consisting of a minimum of 40 hours of instruction within the previous two years. The instruction shall have covered applicable laws and regulations and defensive driving practices, a minimum of eight hours of certified defensive driving, and a minimum of 20 hours of behind-the-wheel training in a vehicle to be used as a general public paratransit vehicle. Applicants seeking to renew a certificate valid for driving a general public paratransit vehicle shall present evidence that they have received two hours of refresher training during each 12 months of driver certificate validity. (c) The driver certificate shall be issued only to applicants qualified by examinations prescribed by the Department of Motor Vehicles and the Department of the California Highway Patrol. The examinations shall be conducted by the Department of the California Highway Patrol. The Department of Motor Vehicles may deny, suspend, or revoke a certificate valid for driving a general public paratransit vehicle for the causes specified in this code or the Education Code or in regulations adopted pursuant to this code or the Education Code. (d) An operator of a general public paratransit vehicle shall do all of the following: (1) Use seatbelts. (2) Refrain from smoking. (3) Report any accident reportable under Section 16000 to the Department of the California Highway Patrol. (e) A person holding a valid certificate to permit the operation of a general public paratransit vehicle, issued prior to January 1, 1991, shall not be required to reapply for a certificate to satisfy any additional requirements imposed by the act adding this subdivision until the certificate he or she holds expires or is canceled or revoked. (Amended by Stats. 1990, Ch. 1360, Sec. 24.)
  182. 12523.6.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Drivers transporting persons with developmental disabilities need the proper driver’s license and special driver certificate, and employers covered by the section may not hire them unless they comply.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12523.6. (a) (1) On and after March 1, 1998, no person who is employed primarily as a driver of a motor vehicle that is used for the transportation of persons with developmental disabilities, as defined in subdivision (a) of Section 4512 of the Welfare and Institutions Code, shall operate that motor vehicle unless that person has in his or her possession a valid driver’s license of the appropriate class and a valid special driver certificate issued by the department. (2) This subdivision only applies to a person who is employed by a business, a nonprofit organization, or a state or local public agency. (b) The special driver certificate shall be issued only to an applicant who has cleared a criminal history background check by the Department of Justice and, if applicable, by the Federal Bureau of Investigation. (1) In order to determine the applicant’s suitability as the driver of a vehicle used for the transportation of persons with developmental disabilities, the Department of the California Highway Patrol shall require the applicant to furnish to that department, on a form provided or approved by that department for submission to the Department of Justice, a full set of fingerprints sufficient to enable a criminal background investigation. (2) Except as provided in paragraph (3), an applicant shall furnish to the Department of the California Highway Patrol evidence of having resided in this state for seven consecutive years immediately prior to the date of application for the certificate. (3) If an applicant is unable to furnish the evidence required under paragraph (2), the Department of the California Highway Patrol shall require the applicant to furnish an additional full set of fingerprints. That department shall submit those fingerprint cards to the Department of Justice. The Department of Justice shall, in turn, submit the additional full set of fingerprints required under this paragraph to the Federal Bureau of Investigation for a national criminal history record check. (4) Applicant fingerprint forms shall be processed and returned to the area office of the Department of the California Highway Patrol from which they originated not later than 15 working days from the date on which the fingerprint forms were received by the Department of Justice, unless circumstances, other than the administrative duties of the Department of Justice, warrant further investigation. Upon implementation of an electronic fingerprinting system with terminals located statewide and managed by the Department of Justice, the Department of Justice shall ascertain the information required pursuant to this subdivision within three working days. (5) The applicant shall pay, in addition to the fees authorized in Section 2427, a fee of twenty-five dollars ($25) for an original certificate and twelve dollars ($12) for the renewal of that certificate to the Department of the California Highway Patrol. (c) A certificate issued under this section shall not be deemed a certification to operate a particular vehicle that otherwise requires a driver’s license or endorsement for a particular class under this code. (d) On or after March 1, 1998, no person who operates a business or a nonprofit organization or agency shall employ a person who is employed primarily as a driver of a motor vehicle for hire that is used for the transportation of persons with developmental disabilities unless the employed person operates the motor vehicle in compliance with subdivision (a). (e) Nothing in this section precludes an employer of persons who are occasionally used as drivers of motor vehicles for the transportation of persons with developmental disabilities from requiring those persons, as a condition of employment, to obtain a special driver certificate pursuant to this section or precludes any volunteer driver from applying for a special driver certificate. (f) As used in this section, a person is employed primarily as driver if that person performs at least 50 percent of his or her time worked including, but not limited to, time spent assisting persons onto and out of the vehicle, or at least 20 hours a week, whichever is less, as a compensated driver of a motor vehicle for hire for the transportation of persons with developmental disabilities. (g) This section does not apply to any person who has successfully completed a background investigation prescribed by law, including, but not limited to, health care transport vehicle operators, or to the operator of a taxicab regulated pursuant to Section 21100. This section does not apply to a person who holds a valid certificate, other than a farm labor vehicle driver certificate, issued under Section 12517.4 or 12527. This section does not apply to a driver who provides transportation on a noncommercial basis to persons with developmental disabilities. (Amended by Stats. 1998, Ch. 877, Sec. 53. Effective January 1, 1999.)
  183. 12524.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Drivers with a class A, B, or C license may not drive vehicles carrying highway route controlled quantities of radioactive materials unless they have the correct valid license class and the required training certificate.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12524. A class A, class B, or class C driver’s licenseholder shall not operate a vehicle hauling highway route controlled quantities of radioactive materials, as defined in Section 173.403 of Title 49 of the Code of Federal Regulations, unless the driver possesses a valid license of the appropriate class and a certificate of training as required in Section 397.101(e) of Title 49 of the Code of Federal Regulations. (Amended by Stats. 2017, Ch. 397, Sec. 2. (SB 810) Effective January 1, 2018.)
  184. 12525.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Mechanics or other maintenance personnel may drive certain vehicles without a schoolbus endorsement or listed certificates if they are doing so as part of their job and are not transporting pupils or the public.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12525. Mechanics or other maintenance personnel may operate vehicles requiring a schoolbus endorsement or certificates issued pursuant to Section 2512, 12517, 12519, 12523, or 12523.5 without obtaining a schoolbus endorsement or those certificates if that operation is within the course of their employment and they do not transport pupils or members of the public. (Amended by Stats. 2006, Ch. 574, Sec. 8. Effective January 1, 2007.)
  185. 12527.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. )

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    Ambulance driver certificate applicants and ambulance operators must meet licensing, age, training, medical, and documentation requirements, with limited exemptions for certain volunteers and public-safety personnel.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 1. Persons Required to Be Licensed, Exemptions, and Age Limits [12500 - 12527] ( Article 1 enacted by Stats. 1959, Ch. 3. ) ## 12527. In addition to satisfying all requirements specified in this code and in regulations adopted pursuant to this code, an applicant for an ambulance driver certificate shall satisfy all of the following requirements: (a) Except as otherwise provided, every ambulance driver responding to an emergency call or transporting patients shall be at least 18 years of age, hold a driver’s license valid in California, possess a valid ambulance driver certificate, and be trained and competent in ambulance operation and the use of safety and emergency care equipment required by the California Code of Regulations governing ambulances. (b) Except as provided in subdivision (e), a person shall not operate an ambulance unless the person has in their immediate possession a driver’s license for the appropriate class of vehicle to be driven and a certificate issued by the department to permit the operation of an ambulance. (c) An ambulance driver certificate shall only be issued by the department upon the successful completion of an examination conducted by the department and subject to all of the following conditions: (1) An applicant for an original or renewal driver certificate shall submit a report of medical examination on a form approved by the department, the Federal Motor Carrier Safety Administration, or the Federal Aviation Administration. The report shall be dated within the two years preceding the application date. (2) An applicant for an original driver certificate shall submit an acceptable fingerprint card. (3) The certificate to drive an ambulance shall be valid for a period not exceeding five years and six months and shall expire on the same date as the driver’s license. The ambulance driver certificate shall only be valid when both of the following conditions exist: (A) The certificate is accompanied by a medical examination certificate that was issued within the preceding two years and approved by the department, the Federal Motor Carrier Safety Administration, or the Federal Aviation Administration. (B) A copy of the medical examination report based upon which the certificate was issued is on file with the department. (4) The ambulance driver certificate is renewable under conditions prescribed by the department. Except as provided in paragraphs (2) and (3) of subdivision (d), an applicant renewing an ambulance driver certificate shall possess certificates or licenses evidencing compliance with the emergency medical training and educational standards for ambulance attendants established by the Emergency Medical Services Authority. (d) (1) Every ambulance driver shall have been trained to assist the ambulance attendant in the care and handling of the ill and injured. Except as provided in paragraph (2), the driver of a California-based ambulance shall, within one year of initial issuance of the driver’s ambulance driver certificate, possess a certificate or license evidencing compliance with the emergency medical training and educational standards established for ambulance attendants by the Emergency Medical Services Authority. In those emergencies requiring both the regularly assigned driver and attendant to be utilized in providing patient care, the specialized emergency medical training requirement shall not apply to persons temporarily detailed to drive the ambulance. (2) Paragraph (1) does not apply to an ambulance driver who is a volunteer driver for a volunteer ambulance service if the service is provided in the unincorporated areas of a county with a population of less than 125,000 persons, as determined by the most recent federal decennial census. The operation of an ambulance subject to this paragraph shall only apply if the name of the driver and the volunteer ambulance service and facts substantiating the public health necessity for an exemption are submitted to the department by the county board of supervisors and at least one of the following entities in the county where the driver operates the ambulance: (A) The county health officer. (B) The county medical care committee. (C) The local emergency medical services agency coordinator. (3) The information required by paragraph (2) shall be submitted to the department at the time of application for an ambulance driver certificate. Upon receipt of that information, the department shall restrict the certificate holder to driving an ambulance for the volunteer ambulance service. (4) The director may terminate any certificate issued pursuant to paragraph (2) at any time the department determines that the qualifying conditions specified no longer exist. (5) The exemption granted pursuant to paragraph (2) shall expire on the expiration date of the ambulance driver certificate. (e) An ambulance certificate is not required for persons operating ambulances in the line of duty as salaried, regular, full-time police officers, deputy sheriffs, members of a fire department of a public agency, or members of a fire department of a federally recognized tribe. This exemption excludes volunteers and part-time employees or members of a department whose duties are primarily clerical or administrative. (Amended by Stats. 2021, Ch. 282, Sec. 4. (AB 798) Effective January 1, 2022.)
  186. 12650.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. )

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    A student over 15 may apply for a student license through the school principal, but the application must be signed by the student and include a signed parent/guardian statement. In some cases, the principal or assigned staff may accept the application if insurance or bond documentation is certified.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. ) ## 12650. (a) Any student over 15 years of age taking a course in automobile driver training, maintained pursuant to Article 12 (commencing with Section 41900) of Chapter 5 of Part 24 of Division 3 of Title 2 of the Education Code, in a secondary school or enrolled in a driver training course offered by a private or parochial school of secondary level may apply to the principal of the school for a student license. (b) The application shall be signed by the applicant before the principal of the school, or a staff member assigned to such duty. The application shall be accompanied by a statement signed by the parents or guardian or person having custody of the minor, consenting to the issuance of a student license to the student and accepting liability for civil damages arising out of the student driving a motor vehicle upon a highway as provided for in Division 9 (commencing with Section 17000) of this code. (c) Notwithstanding any other provision of this code, if the person or persons required to sign a statement consenting to the issuance of a student license and accepting liability as provided in subdivision (b) are not residents of this state and the student resides at the school, or the student is a foster child with no parents or guardian available to sign this statement, the application may be accepted if the principal of the school or staff member assigned such duties certifies that the school has filed with the department a certificate of insurance carrier or surety company that there is in effect a policy or bond meeting the requirements of Section 16056, and that such policy or bond will cover the liability for civil damages arising out of the student driving a motor vehicle upon a highway. (Amended by Stats. 1977, Ch. 579.)
  187. 12651.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. )

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    A principal or assigned staff member may issue or reissue a student license without charge if the applicant is, in their opinion, qualified and has filed a proper application.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. ) ## 12651. The principal or staff member assigned such duty may issue or reissue a student license without cost whenever in his opinion the applicant is qualified to take the course of instruction and has filed a proper application therefor. (Amended by Stats. 1978, Ch. 162.)
  188. 12652.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. )

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    A student license limits driving to driver-training times, under the instructor’s direction and supervision, and is valid only for the course period and for no more than one year from issuance.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. ) ## 12652. A student license shall limit the operation of a motor vehicle to such times as the licensee is taking driver training in connection with the driver education program and then only at the direction and under the supervision of the instructor and shall be valid only for the period covered by the course and for not more than one year from the date of issuance. (Enacted by Stats. 1959, Ch. 3.)
  189. 12653.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. )

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    A student license can be canceled by the school principal or the department if safety requires it, and it must be canceled if the parent or other consenting person makes a written request.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. ) ## 12653. A student license may be canceled by the principal of the school or by the department whenever, in the opinion of either, the safety of the licensee or other persons requires the action and shall be canceled upon the written request of the parent or other person who signed the consent to issue the license. (Amended by Stats. 1978, Ch. 162.)
  190. 12660.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. )

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    This section lets the department run a student-license program for eligible driving schools, sets conditions for applicants and schools, requires insurance, and requires reports to the Legislature.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. ) ## 12660. (a) The department may establish a program authorizing a driving school licensed under Chapter 1 (commencing with Section 11100) of Division 5 to issue a student license to operate a class 3 vehicle to any applicant 15 years of age or older, subject to the conditions specified in subdivision (d). (b) The department may charge any driving school participating in the program a fee not to exceed two dollars ($2) per applicant to recover the department’s cost in establishing and monitoring the program. The fee that a participating school may charge an applicant for a student license may not exceed the fee that the department charges the school for the license. (c) The department may remove a driving school from the program if the department determines that the school has issued a student license fraudulently, or has otherwise not followed the requirements of the program. This fraudulent conduct may result in cause for suspension or revocation of the driving school license. (d) (1) Applicants shall meet the qualification standards specified in regulations adopted by the department pursuant to Section 12661. The student license application shall be accompanied by a statement signed by the parents or guardian, or person having custody of the minor, consenting to the issuance of a student license to the applicant. (2) No licensed driving school may issue a student license to any applicant under the age of 17 years and 6 months unless that applicant shows proof of satisfactory completion of an approved course in driver education, pursuant to standards specified in paragraph (4) of subdivision (a) of Section 12814.6. (e) A driving school owner or an independent instructor licensed under Section 11105.5 shall maintain liability insurance for bodily injury or property damage caused by the use of a motor vehicle in driving instruction, and for the liability of the driving school, the instructor, and the student, in accordance with Section 11103. (f) The department shall submit a report to the Legislature on the progress of the program established under subdivision (a) within two years after the program is implemented. The report shall include, but not be limited to, an analysis of the costs and benefits of the program and shall include recommendations by the department. (g) The director may terminate the program at any time the department determines that continued operation of the program would have an adverse effect on traffic safety. The finding upon which the termination is based shall be reported to the Legislature within 30 days following termination of the program. (Amended by Stats. 2003, Ch. 768, Sec. 3. Effective January 1, 2004.)
  191. 12661.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. )

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    The department must adopt student-license regulations with the State Department of Education and include required standards, confidentiality rules, monitoring procedures, and license-limit notices.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 2. Student Licenses [12650 - 12661] ( Article 2 enacted by Stats. 1959, Ch. 3. ) ## 12661. The department, in consultation with the State Department of Education, shall adopt regulations for the issuance of student licenses pursuant to Section 12660. The department and the State Department of Education shall seek advice and input on those regulations from the public, law enforcement, and the driving school industry. The regulations shall include all of the following: (a) Standards and procedures for the issuance of student licenses pursuant to Section 12660, including the determination of an applicant’s qualifications under Section 12805. (b) Standards and procedures to ensure that all records of a driving school relating to the physical or mental condition of any student are confidential, except to the department. (c) Standards and procedures for monitoring the issuance of student licenses. (d) A requirement that each student license issued pursuant to Section 12660 be accompanied by a verbal and written description of the limitations of that license in terms of duration and use. (e) Any other requirements necessary to carry out Section 12660. (Added by Stats. 1987, Ch. 1029, Sec. 2.)
  192. 12800.6.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    Driver’s license applications must tell applicants about a Department of Justice video on proper conduct during traffic stops.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12800.6. (a) An application for an original, renewal, or duplicate of a driver’s license shall inform the applicant of the Department of Justice’s video on proper conduct during a traffic stop created pursuant to Section 1656.1. (b) The information in subdivision (a) shall be included upon the next scheduled revision of the driver’s license application subsequent to the release of the Department of Justice’s video on proper conduct during a traffic stop created pursuant to Section 1656.1. (Added by Stats. 2022, Ch. 332, Sec. 4. (AB 2537) Effective January 1, 2023.)
  193. 12800.7.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    The department may require identification with an original, renewal, or duplicate driver’s license application, and it generally may not disclose identity or residency documents except in limited cases.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12800.7. (a) Upon application for an original, renewal, or duplicate of a driver’s license the department may require the applicant to produce any identification that it determines is necessary in order to ensure that the name of the applicant stated in the application is their true, full name and that their residence address as set forth in the application is their true residence address. (b) Notwithstanding any other law, any document provided by the applicant to the department for purposes of proving the applicant’s identity, true, full name, California residency, or that the applicant’s presence in the United States is authorized under federal law, is not a public record and shall not be disclosed by the department except in response to a subpoena for individual records in a criminal proceeding or a court order, or in response to a law enforcement request to address an urgent health or safety need if the law enforcement agency certifies in writing the specific circumstances that do not permit authorities time to obtain a court order. Immigration enforcement, as defined in Section 7284.4 of the Government Code, does not constitute an urgent health and safety need for purposes of this subdivision. (Amended by Stats. 2022, Ch. 482, Sec. 9. (AB 1766) Effective January 1, 2023.)
  194. 12801.10.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    An individual may not apply for or be issued a commercial driver’s license without submitting a social security account number, and the department must post related information on its website.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.10. (a) Nothing in Section 1653.5, 12800, 12801, 12801.5, or 12801.9 authorizes an individual to apply for, or be issued, a commercial driver’s license without the submission of his or her social security account number upon application. (b) This section shall become operative on January 1, 2015, or on the date that the director executes a declaration pursuant to Section 12801.11, whichever is sooner. (c) This section shall become inoperative on the effective date of a final judicial determination made by any court of appellate jurisdiction that any provision of the act that added this section, or its application, either in whole or in part, is enjoined, found unconstitutional, or held invalid for any reason. The department shall post this information on its Internet Web site. (Added by Stats. 2013, Ch. 524, Sec. 16. (AB 60) Effective January 1, 2014. Section operative January 1, 2015, or sooner, as provided in subd. (m). Conditionally inoperative as provided in subd. (n).)
  195. 12801.11.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    If the director decides the department can start issuing driver’s licenses before January 1, 2015, the director must make a declaration, send a copy to the Legislature’s fiscal and policy committees and the Governor within five business days, and post the information online. The department must also post the information online if this section becomes inoperative after a final appellate court determination described in the text.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.11. (a) If the director determines that the department is prepared to begin issuing driver’s licenses pursuant to Section 12801.9 on a date sooner than January 1, 2015, the director shall execute a declaration stating that determination and date and, within five business days, provide a copy of that declaration to the appropriate fiscal and policy committees of the Legislature and to the Governor, and shall post this information on its Internet Web site. (b) This section shall become inoperative on the effective date of a final judicial determination made by any court of appellate jurisdiction that any provision of the act that added this section, or its application, either in whole or in part, is enjoined, found unconstitutional, or held invalid for any reason. The department shall post this information on its Internet Web site. (Added by Stats. 2013, Ch. 524, Sec. 17. (AB 60) Effective January 1, 2014. Conditionally inoperative as prescribed by its own provisions.)
  196. 12801.2.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    A person may not take money just for filling out another person's original driver’s license application.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.2. (a) A person shall not receive financial compensation for the sole purpose of filling out an original driver’s license application for another person. (b) A person in violation of this section is subject to a civil penalty of not more than two thousand five hundred dollars ($2,500) for each offense. Actions for relief pursuant to this section may be commenced in a court of competent jurisdiction by the Attorney General, or by the district attorney, county counsel, or city attorney of the location in which the violation occurred. (c) Section 40000.1 does not apply to a violation of this section. (Added by Stats. 2014, Ch. 447, Sec. 1. (AB 852) Effective January 1, 2015.)
  197. 12801.6.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    The department may issue an original driver’s license if the applicant meets the specified proof-of-presence and Social Security documentation requirements.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.6. (a) Any federal document demonstrating favorable action by the federal government for acceptance of a person into the deferred action for childhood arrivals program shall satisfy the requirements of Section 12801.5. (b) The department may issue an original driver’s license to the person who submits proof of presence in the United States as authorized under federal law pursuant to subdivision (a) and either a social security account number or ineligibility for a social security account number. (Added by Stats. 2012, Ch. 862, Sec. 3. (AB 2189) Effective January 1, 2013.)
  198. 12801.7.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    The department must not issue certain licenses or ID cards to people identified as deported persons, and it must cancel any such existing cards, mail notice, and may require proof of lawful U.S. presence.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.7. (a) The department shall not issue an original driver’s license or identification card, or a renewal, duplicate, or replacement driver’s license or identification card to any person for whom the department has received notice from the United States Department of Homeland Security that the person has been determined and found by the United States Department of Homeland Security to be a deported person under Section 1252 of Title 8 of the United States Code. (b) (1) The department shall cancel any driver’s license or identification card issued to any person identified as specified in subdivision (a). (2) The cancellation shall become effective on the 30th day after the date the cancellation notice is mailed to the person, except as authorized under paragraph (3). (3) The person may request a review of the intended cancellation during the 30-day period specified in paragraph (2) and, if proof is provided to show the person is legally present in the United States as authorized under federal law, the department shall rescind the cancellation. (4) The cancellation notice shall be mailed to the person’s last known address. (c) The department shall require an applicant for a driver’s license whose license was canceled under this section to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law. (d) This section shall become operative on, and apply only to persons determined and found to be a deported person who is not a citizen or national of the United States after, July 1, 1997. (Amended by Stats. 2021, Ch. 296, Sec. 61. (AB 1096) Effective January 1, 2022.)
  199. 12801.8.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    The department must issue a 90-day temporary driver’s license to a qualifying legal nonimmigrant applicant, and may have to extend it if federal verification is delayed.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.8. (a) In the case of a legal, nonimmigrant driver’s license applicant, the department shall issue a temporary driver’s license, valid for 90 days, if the applicant has successfully completed the application and the related requirements for the issuance of a driver’s license under this code, including paragraph (1) of subdivision (a) of Section 12805. If the United States Department of Homeland Security is unable to verify the applicant’s presence before the temporary driver’s license expires, the department shall, at least 15 days before the temporary driver’s license expires, extend the temporary driver’s license for an additional 120 days and notify the applicant by mail that the temporary driver’s license is being extended. (b) If the department adjusts the expiration date of any driver’s license issued pursuant to this code so that the date does not exceed the expiration date of a federal document submitted pursuant to subdivision (a) of Section 12801.5, the applicant may, upon receipt of a notice of renewal of the driver’s license by the department sent prior to the expiration of the license, request an extension of the term of the driver’s license by submitting to the department satisfactory proof that the applicant’s presence in the United States has been reauthorized or extended under federal law. After verifying that the applicant’s presence in the United States has been reauthorized or extended by federal law, the department shall adjust the expiration date of the driver’s license so that it does not exceed the expiration date of the revised federal document submitted pursuant to subdivision (a) of Section 12801.5 and complies with the related requirements of this code. (c) The department shall establish a procedure for receiving mailed requests for the extension of driver’s licenses as described in this section. (Amended by Stats. 2016, Ch. 339, Sec. 8. (SB 838) Effective September 13, 2016.)
  200. 12801.9.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. )

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    The department must issue certain driver’s licenses and identification cards to eligible people who cannot prove authorized U.S. presence, and it must protect related information and set rules for verification and appeals.

    ## Vehicle Code - VEH ## DIVISION 6. DRIVERS' LICENSES [12500 - 15326] ( Heading of Division 6 amended by Stats. 1961, Ch. 1615. ) ## CHAPTER 1. Issuance of Licenses, Expiration, and Renewal [12500 - 13020] ( Chapter 1 enacted by Stats. 1959, Ch. 3. ) ## ARTICLE 3. Issuance and Renewal of Licenses [12800 - 12819] ( Article 3 enacted by Stats. 1959, Ch. 3. ) ## 12801.9. (a) (1) Notwithstanding Section 12801.5, the department shall issue an original driver’s license to a person who is unable to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law if the person meets all other qualifications for licensure and provides satisfactory proof to the department of the person’s identity and California residency. (2) Notwithstanding Section 12801.5 and commencing no later than July 1, 2027, the department shall issue an identification card to a person who is unable to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law if the person provides satisfactory proof to the department of the person’s identity and California residency. (b) The department shall adopt regulations to carry out the purposes of this section, including, but not limited to, procedures for (1) identifying documents acceptable for the purposes of proving identity and California residency, (2) procedures for verifying the authenticity of the documents, (3) issuance of a temporary license pending verification of any document’s authenticity, and (4) hearings to appeal a denial of a license or temporary license, or identification card. (c) Regulations adopted for purposes of establishing the documents acceptable to prove identity and residency pursuant to subdivision (b) shall be promulgated by the department in consultation with appropriate interested parties, in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), including law enforcement representatives, immigrant rights representatives, labor representatives, and other stakeholders, which may include, but are not limited to, the Department of the California Highway Patrol, the California State Sheriffs’ Association, and the California Police Chiefs Association. The department shall accept various types of documentation for this purpose, including, but not limited to, the following documents: (1) A valid, unexpired consular identification document issued by a consulate from the applicant’s country of citizenship, or a valid, unexpired passport from the applicant’s country of citizenship. (2) An original birth certificate, or other proof of age, as designated by the department. (3) A home utility bill, lease or rental agreement, or other proof of California residence, as designated by the department. (4) The following documents, which, if in a language other than English, shall be accompanied by a certified translation or an affidavit of translation into English: (A) A marriage license or divorce certificate. (B) A foreign federal electoral photo card issued on or after January 1, 1991. (C) A foreign driver’s license. (5) A United States Department of Homeland Security Form I-589, Application for Asylum and for Withholding of Removal. (6) An official school or college transcript that includes the applicant’s date of birth or a foreign school record that is sealed and includes a photograph of the applicant at the age the record was issued. (7) A United States Department of Homeland Security Form I-20 or Form DS-2019. (8) A deed or title to real property. (9) A property tax bill or statement issued within the previous 12 months. (10) An income tax return. (d) (1) (A) A license issued pursuant to this section shall bear the following notice: “This card is not acceptable for official federal purposes. This license is issued only as a license to drive a motor vehicle. It does not establish eligibility for employment, voter registration, or public benefits.” (B) An identification card issued pursuant to this section shall bear the following notice: “This card is not acceptable for official federal purposes. This identification card is issued only as a means of identification. It does not establish eligibility for employment, voter registration, or public benefits.” (2) The notice described in paragraph (1) shall be in lieu of the notice provided in Section 12800.5. (3) Paragraphs (1) and (2) shall become inoperative upon the department’s next scheduled revision of the driver’s license or identification card on or after January 1, 2023, at which time, a driver’s license and identification card issued pursuant to this section shall bear the notice described in Section 12800.5 or 13005.5, respectively, as added by the act that added this paragraph. (e) Notwithstanding Section 40300 or any other law, a peace officer shall not detain or arrest a person solely on the belief that the person is an unlicensed driver, unless the officer has reasonable cause to believe the person driving is under 16 years of age. (f) The inability to obtain a driver’s license pursuant to this section does not abrogate or diminish in any respect the legal requirement of every driver in this state to obey the motor vehicle laws of this state, including laws with respect to licensing, motor vehicle registration, and financial responsibility. (g) It is a violation of law to discriminate against a person because the person holds or presents a license or identification card issued under this section, including, but not limited to, the following: (1) It is a violation of the Unruh Civil Rights Act (Section 51 of the Civil Code), for a business establishment to discriminate against a person because the person holds or presents a license or identification card issued under this section. (2) (A) It is a violation of the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code) for an employer or other covered person or entity, pursuant to Section 12940 of the Government Code and subdivision (v) of Section 12926 of the Government Code, to discriminate against a person because the person holds or presents a driver’s license or identification card issued pursuant to this section, or for an employer or other covered entity to require a person to present a driver’s license, unless possessing a driver’s license is required by law or is required by the employer and the employer’s requirement is otherwise permitted by law. This section shall not be construed to limit or expand an employer’s authority to require a person to possess a driver’s license. (B) Notwithstanding subparagraph (A), this section shall not be construed to alter an employer’s rights or obligations under Section 1324a of Title 8 of the United States Code regarding obtaining documentation evidencing identity and authorization for employment. An action taken by an employer that is required by the federal Immigration and Nationality Act (8 U.S.C. Sec. 1324a) is not a violation of law. (3) It is a violation of Section 11135 of the Government Code for a state or local governmental authority, agent, or person acting on behalf of a state or local governmental authority, or a program or activity that is funded directly or receives financial assistance from the state, to discriminate against an individual because the individual holds or presents a license or identification card issued pursuant to this section, including by notifying a law enforcement agency of the individual’s identity or that the individual carries a license or identification card issued under this section if a notification is not required by law or would not have been provided if the individual held a license issued pursuant to Section 12801 or an identification card issued pursuant to Section 13000. (h) Driver’s license or identification card information obtained by an employer shall be treated as private and confidential, is exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), and shall not be disclosed to any unauthorized person or used for any purpose other than to establish identity and authorization to drive, as applicable. (i) Information collected pursuant to this section is not a public record and shall not be disclosed by the department, except as required by law. (j) Documents provided by applicants to prove identity or residency pursuant to this section are not public records and shall not be disclosed except in response to a subpoena for individual records in a criminal proceeding or a court order, or in response to a law enforcement request to address an urgent health or safety need if the law enforcement agency certifies in writing the specific circumstances that do not permit authorities time to obtain a court order. Immigration enforcement, as defined in Section 7284.4 of the Government Code, does not constitute an urgent health and safety need for purposes of this subdivision. (k) A license or identification card issued pursuant to this section shall not be used as evidence of an individual’s citizenship or immigration status for any purpose. (l) In addition to the fees required by Section 14902, a person applying for an identification card pursuant to this section may be required to pay an additional fee determined by the department that is sufficient to offset the reasonable administrative costs of implementing the provisions of the act that authorized the issuance of identification cards pursuant to this section. If this additional fee is assessed, it shall only apply until June 30, 2030. (m) This section shall become inoperative on the effective date of a final judicial determination made by any court of appellate jurisdiction that any provision of the act that added this section, or its application, either in whole or in part, is enjoined, found unconstitutional, or held invalid for any reason. The department shall post this information on its internet website. (Amended by Stats. 2023, Ch. 311, Sec. 25. (SB 883) Effective January 1, 2024. Conditionally inoperative as provided in subd. (m).)

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