CCLME.ORG - DIVISION 1. DEPARTMENT OF MOTOR VEHICLES

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(c) The board may, at its discretion, dismiss a protest for good cause shown. Good cause may include, but shall not be limited to, failure by the protestant to comply with any of the following sections of Article 5: 583, 585, 586, 589.
(d) The board may, at its discretion, dismiss a petition, an appeal or a protest, if additional information requested by the board is not supplied within the time specified by the board.
(e) An order of dismissal of a petition, an appeal or a protest shall be a final order pursuant to Vehicle Code sections 3057 or 3067, and no reconsideration or rehearing shall be permitted.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Sections 3050(a), 3050(c), 3050(d) and 3066, Vehicle Code;Automotive Management Group Inc. [Santa Cruz Mitsubishi] v. New Motor Vehicle Board; Real Party in Interest, Mitsubishi Motor Sales of America, Inc.(1993) 20 Cal.App.4th 1002; 24 Cal.Rptr.2d 904;Duarte & Witting, Inc. v. New Motor Vehicle Board, Defendant and Respondent; DaimlerChrysler Motors Corp., Real Party in Interest and Respondent(2002), 104 Cal.App.4th 626; 128 Cal.Rptr.2d 501.

s 551.10. Costs for Changes in Venue.
A party to a proceeding before the board may request a change in venue. The board or an administrative law judge designated by the board or its executive director may assess board costs to the requesting party if the requesting party cancels the proceedings at the new location without good cause or sufficient notice to the board to allow the board to avoid costs incurred in changing the venue.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Sections 3015 and 3050(a), Vehicle Code.

s 551.11. Settlement Conference: Separation of Powers.
(a) The administrative law judge at the settlement conference shall not preside at the hearing on the merits or in any proceeding relating to motions for temporary relief or interim orders unless otherwise stipulated by the parties. Nothing in this regulation shall affect or limit the provisions of Vehicle Code s 3050.4.
(b) The parties shall file a written settlement conference statement that contains a detailed statement of facts, a statement of issues, and a good faith settlement proposal. The settlement conference statement and the original proof of service shall be received by the Board and copies served on opposing party or parties no later than five business days before the settlement conference.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Sections 3050 and 3050.4, Vehicle Code.

s 551.12. Notice of Assignment of Administrative Law Judges; Peremptory Challenges.
(a) The assigned administrative law judge in a protest or petition proceeding will be noted on the order of time and place of hearing. If there is a subsequent assignment, an amended order or notice will be issued identifying the new administrative law judge.
(b) In any proceeding other than those relating to applications for temporary relief or interim orders, each party is entitled to a peremptory challenge of one administrative law judge, based solely upon satisfying all of the following requirements:
(1) The peremptory challenge shall be filed with the Board no later than either 20 days from the date of the order of time and place of hearing or 20 days prior to the date scheduled for commencement of the hearing, whichever is earlier.
(2) The peremptory challenge shall be made by the party, the party's attorney, or authorized representative appearing in any proceeding by written declaration consistent with the requirement of subsection (e), below; and
(3) Notice of a peremptory challenge shall be served on opposing parties.
(c) If a party obtains the removal of the assigned administrative law judge, either by way of peremptory challenge, or for cause under Section 551.1, any other party shall have the right to a peremptory challenge of the subsequently assigned administrative law judge provided that the party complies with subparagraphs (b)(2)-(3), above. This latter peremptory challenge shall be filed with the Board no later than either 20 days from the date of the notice or order identifying the subsequent administrative law judge or 10 days prior to the date scheduled for the hearing, whichever is earlier.
(d) No peremptory challenge shall be considered or granted if it is not made within the time limits set forth above.
(e) Any declaration filed pursuant to this regulation shall be in substantially the following form:
I, ____ (name)____, declare: That I am a party (or attorney or authorized representative for a party) in the pending matter. That the administrative law judge assigned to the hearing is prejudiced against the party (or his or her attorney or authorized representative of record) or the interest of the party (or his or her attorney or authorized representative) so that the declarant cannot or believes that he or she cannot have a fair and impartial hearing before the administrative law judge.
This declaration is made under penalty of perjury under the laws of the state of California and is signed ____(date)____ at ____(city and state)____.
(f) Unless required for the convenience of the board or good cause is shown, a continuance of the hearing shall not be granted by reason of a peremptory challenge. If a continuance is granted, the matter shall be continued to the first convenient day for the board and shall be reassigned or transferred for hearing as promptly as possible. Nothing in this regulation shall affect or limit the provisions of Vehicle Code s 3066(a).
(g) Nothing in this regulation shall affect or limit the provisions of a challenge for cause under Article 1, section 551.1.

Note: Authority cited: Sections 3050(a) and 3066, Vehicle Code. Reference: Section 3050(a), Vehicle Code; and Section 11425.40, Government Code.

s 551.13. Intervention; Grant of Motion; Conditions.
Any person, including a board member, concerned with the activities or practices of any person applying for or holding a license as a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, distributor branch, or representative, may file a motion with the executive director of the board (or designee) requesting that the movant be allowed to intervene in a pending proceeding. The motion to intervene may be granted subject to the following:
(a) The motion shall be submitted in writing, with copies served on all parties named in the pending proceeding.
(b) The motion shall be filed as early as practicable in advance of the hearing.
(c) The motion shall state facts demonstrating that the applicant's legal rights, duties, privileges, or immunities will be substantially affected by the proceeding.
(d) The board, its executive director, or an administrative law judge designated by the board or its executive director, shall determine that the interests of justice and the orderly and prompt conduct of the proceeding will not be impaired by allowing the intervention.
(e) The board, its executive director, or an administrative law judge designated by the board or its executive director, may impose conditions on the intervenor's participation in the proceeding, either at the time that intervention is granted or at a subsequent time. Such conditions shall be at the sole discretion of the board, its executive director, or an administrative law judge designated by the board or its executive director, based on the knowledge and judgment at that time, so as to promote the interests of justice. Conditions include, but are not limited to, the following:
(1) Limiting the intervenor's participation to designated issues;
(2) Limiting or excluding the intervenor's participation in discovery and cross-examination; and
(3) Limiting or excluding the intervenor's participation in settlement negotiations.
(f) The board, its executive director, or an administrative law judge designated by the board or its executive director, shall issue an order granting or denying the motion for intervention as early as practicable in advance of the hearing, specifying any conditions, and briefly stating the reasons for the order. The board, its executive director, or an administrative law judge designated by the board or its executive director, may modify the order at any time by giving notice to all parties, stating the reasons for the modification. The determination of the board, its executive director, or an administrative law judge designated by the board or its executive director, in granting or denying the motion for intervention, or the determination modifying the order previously issued, is not subject to administrative or judicial review.
The board, its executive director, or an administrative law judge designated by the board or its executive director, may, in his or her discretion, allow the filing of amicus curiae briefs.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(a), Vehicle Code; and Section 11440.50, Government Code.

s 551.14. Request for Informal Mediation.
(a) Prior to initiating a petition pursuant to section 3050(c) of the Vehicle Code, either party may request that the board mediate any honest difference of opinion or viewpoint existing between any member of the public and any new motor vehicle dealer, manufacturer branch, distributor, distributor branch, or representative.
(b) Participation in informal mediation is voluntary, informal, and nonadversarial.
(c) The request for informal mediation shall set forth the nature of the matter which the board is requested to mediate. The request for informal mediation shall comply substantially with the following requirements:
(1) Include the name, mailing address and telephone number of the person requesting informal mediation; the name, mailing address and telephone number of his or her attorney or authorized agent if any, and the name and address of the licensee or applicant for license whose activities or practices are in question.
(2) Insofar as is known to the person requesting informal mediation, include the names, residence addresses and business addresses of persons and the dates, places and specific actions or practices involved in the matter.
(3) Describe the relief or disposition of the matter which the person requesting informal mediation would consider acceptable.
(d) A copy of the request for informal mediation shall be served on the licensee or applicant for license whose activities or practices are in question and proof of service (in compliance with Sections 1013(a) and 2115.5, Code of Civil Procedure) thereof shall accompany the request for informal mediation filed with the executive director of the board.
(e) The form of the request for informal mediation shall substantially conform with the provisions of Article 6 hereof.
(f) Article 1, section 553.40 shall apply to all requests for informal mediation.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 551.15. Request for Discovery; Informal Mediation.
For purposes of discovery, the board or its executive director, or an administrative law judge designated by the board or its executive director may, if deemed appropriate and proper under the circumstances, authorize the parties to engage in such discovery procedures as are provided for in civil actions in Article 3 (commencing with Section 2016.010) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure, excepting the provisions of Chapter 13, Sections 2030.010 through 2030.410 of that code.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 551.16. Informal Mediation Process.
(a) Upon receipt of the request for informal mediation, the Board staff will initiate a conference call with the parties to ascertain whether the licensee or applicant for license whose activities or practices are in question is agreeable to participating in informal mediation.
(b) If the licensee or applicant for license whose activities or practices are in question is not agreeable to participating in informal mediation, either party may request that this matter be converted to a petition proceeding pursuant to Article 1, section 551.17.
(c) If the licensee or applicant for license whose activities or practices are in question is agreeable to participating in informal mediation, a mutually agreeable date for informal mediation will be calendared.
(1) Upon order of the board, and at least five business days prior to participating in informal mediation, the parties shall file and serve a premediation statement which includes a detailed statement of facts, statement of issues, and a realistic proposal for resolving the dispute.
(2) The board, its executive director, or an administrative law judge designated by the board or its executive director, shall preside over the informal mediation.
(3) Evidence set forth in declarations of expert or percipient witnesses made under penalty or perjury may be considered by the board, its executive director, or an administrative law judge designated by the board or its executive director, in his or her discretion.
(4) At any time during informal mediation, either party may request that this matter be converted to a petition proceeding pursuant to Article 1, section 551.17
(5) All communications, negotiations, or settlement discussions by and between participants in the course of informal mediation shall remain confidential.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 551.17. Conversion of Informal Mediation to Petition; Confidentiality.
(a) The board or its executive director, upon the request of either party, or upon its own motion, may convert an informal mediation to a petition under section 3050(c) of the Vehicle Code. The respondent shall be an applicant for or holder of a license as a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, distributor branch, or representative.
(b) Within 10 days of approval to convert the proceeding, the petitioner shall file and serve a petition with the board which substantially complies with Article 2, section 555et seq.
(c) Upon receipt of the petition, a copy shall be transmitted by the executive director of the board to each member of the board for consideration in accordance with Section 557 hereof.
(d) If the filing fee was paid by both parties in the informal mediation proceeding, no additional filing fee is required for conversion to a petition.
(e) In accordance with Section 558 hereof, the respondent shall file with the executive director of the board a written answer to the petition.
(f) Chapter 6 (commencing with Section 3000) of Division 2 of the Vehicle Code, and Chapter 2 (commencing with Section 550) of Division 1 of Title 13 of the California Code of Regulations shall apply.
(g) Notwithstanding any other provision of law, a communication made in informal mediation is protected to the following extent:
(1) Anything said, any admission made, and any document prepared in the course of, or pursuant to, informal mediation is a confidential communication, and a party to the informal mediation has a privilege to refuse to disclose and to prevent another from disclosing the communication, whether in an adjudicative proceeding, civil action, or other proceeding. This subsection does not limit the admissibility of evidence if all parties to the proceeding consent.
(2) No reference to the informal mediation proceedings, the evidence produced, or any other aspect of the informal mediation may be made in an adjudicative proceeding or civil action, whether as affirmative evidence, by way of impeachment, or for any other purpose.
(3) No informal mediation administrative law judge is competent to testify in a subsequent administrative or civil proceeding as to any statement, conduct, decision, or order occurring at, or in conjunction with, the informal mediation.
(4) Evidence otherwise admissible outside of informal mediation is not inadmissible or protected from disclosure solely by reason of its introduction or use in informal mediation.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code; and Sections 11420.30 and 11470.50, Government Code.

s 552. Records.
(a) Place of Keeping. The records of the board shall be maintained at its principal office at Sacramento in the custody of the executive director. The executive director may certify to any of the board's official acts and may certify copies of all official documents and orders of the board.
(b) Sale of Copies of Records. The executive director shall sell copies of all or any part of the records of the board at a charge sufficient to pay at least the cost of the copies.
(c) Preparation of Certified Copies Without Charge. The board for good cause shown may direct the executive director to certify copies without charge.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(a), Vehicle Code.

s 553. Annual Board Fee.
(a) Pursuant to section 11723 of the Vehicle Code, every applicant for a license as a new motor vehicle dealer or dealer branch, and every applicant for renewal of a license as a new motor vehicle dealer or dealer branch, shall pay to the department for each issuance or renewal of such license, the sum of $225.00, per year of licensure, in addition to all other fees now required by the Vehicle Code.
For the purposes of this section, a dealer or dealer branch which is enfranchised to sell both new motorcycles and new motor vehicles other than motorcycles shall be subject to a licensing fee for sales of motorcycles and a licensing fee for sales of motor vehicles other than motorcycles.
(b) Pursuant to section 3016 of the Vehicle Code, every new motor vehicle manufacturer and distributor shall pay to the Board an annual fee of $.338 per new motor vehicle distributed by the manufacturer or distributor which was sold, leased, or otherwise distributed in California to a consumer of such new motor vehicles during the preceding calendar year, provided, however, that the fee to be paid by each manufacturer or distributor shall not be less than $225.00.
The board may waive fees for a new motor vehicle manufacturer or distributor licensed in California, based on a determination that the manufacturer or distributor either does not sell vehicles in California or does not have an independent dealer or dealer branch in California.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Sections 11723 and 3016, Vehicle Code; and Section 472.5(b), Business and Professions Code.

s 553.1. Filing Fees.

Note: Authority cited: Section 3016, 3050(a) and 3050.5, Vehicle Code. Reference: Section 3060 and 3062, Vehicle Code.

s 553.10. Statement of Number of Vehicles Distributed.
(a) All manufacturers and distributors of new vehicles (as defined in section 430 of the Vehicle Code) are required to file a written statement with the Board on or before May 1 of each calendar year. The statement shall include:
(1) The number of new motor vehicles distributed by the manufacturer or distributor which were sold, leased, or otherwise distributed in California to a consumer of such new motor vehicles during the preceding calendar year;
(2) The name and business address of other manufacturers and distributors who are required to submit a statement reporting the distribution of the same new motor vehicles;
(3) The name and business address of the person or persons authorized to receive notices on behalf of the manufacturer or distributor.
(b) If the information required by subdivision (a) is not received by the Board within the applicable time period or it is determined by the Board that the information that is received is substantially inaccurate as compared to the registration information derived from the records of the Department of Motor Vehicles, it shall be presumed that the number of new motor vehicles sold, leased, or otherwise distributed in this state by or on behalf of the non-reporting entity during the preceding calendar year is equal to the total number of new registrations during the period in question of all vehicles manufactured or distributed by the non-reporting entity as derived from the records of the Department of Motor Vehicles.

Note: Authority cited: Section 3050(a) and 3016, Vehicle Code. Reference: Section 472.5(b) and (c)(2), Business and Professions Code.

s 553.20. Determination of Annual Board Fee.
Upon receipt of the information required by section 553.10(a), or as determined by section 553.10(b), the Board shall calculate the Annual Board Fee to be paid by each manufacture, and distributor by multiplying the annual fee per vehicle (as set forth in section 553(b)) by the number of new motor vehicles distributed by the manufacturer or distributor in the preceding calendar year. The Board shall thereafter send a written notice by certified mail, return receipt requested, to each manufacturer and distributor stating the number of new motor vehicles distributed by the manufacturer or distributor and the amount of the fee to be paid.
Payment of the fee shall be made to the New Motor Vehicle Board no later than thirty (30) days after the date of receipt of the notice.

Note: Authority cited: Section 3050(a) and 3016, Vehicle Code. Reference: Section 472.5(b), (c)(1) and (c)(2), Business and Professions Code.

s 553.40. Filing Fees.
A party filing a request for informal mediation, petition, appeal, or protest pursuant to the provisions of this subchapter shall simultaneously deliver to the board a filing fee of $200, which is to be in the form of a check or money order payable directly to the board, or a credit card payment. The initial pleading filed in response to such request for informal mediation, petition, appeal, or protest shall also be accompanied by a $200 filing fee. The board, in the discretion of the executive director, may refuse to accept for filing any pleading subject to this section that is not accompanied by the requisite fee. The executive director may, upon showing of good cause, waive any such fee.

Note: Authority cited: Section 3016, 3050(a) and 3050.5, Vehicle Code; and Section 6163, Government Code. Reference: Sections 3060 and 3062, Vehicle Code.

s 553.50. Obligation to Comply.
(a) All manufacturers, manufacturer branches, distributors and distributor branches of new motor vehicles (as defined in Business and Professions Code Section 472(a)) are required to file a written statement with the New Motor Vehicle Board on or before May 1 of each calendar year. The statement shall include:
(1) The number of new motor vehicles distributed by the manufacturer or distributor which were sold, leased, or otherwise distributed in California to a consumer of such new motor vehicles during the preceding calendar year;
(2) The name and business address of other manufacturers and distributors who are required to submit a statement reporting the distribution of the same new motor vehicles; and
(3) The business address and name of the person or persons authorized to receive notices on behalf of the manufacturer or distributor.
(b) Payment of the fees pursuant to Business and Professions Code Section 472.5 shall be the responsibility of the manufacturer or distributor which authorizes a retail seller, including a dealer, franchisee, or lessor (as those terms are defined in the Vehicle Code), to sell, lease, or otherwise distribute the new motor vehicles.

Note: Authority cited: Section 472.5(f), Business and Professions Code. Reference: Sections 472.5(b) and (f), Business and Professions Code; and Sections 285, 331.1 and 372, Vehicle Code.

s 553.60. Presumption of Liability.
If the information required by Section 553.50 is not received by the Board within the applicable time period or it is determined by the Board that the information that is received is substantially inaccurate as compared to the registration information derived from the records of the Department of Motor Vehicles, it shall be presumed that the number of new motor vehicles sold, leased, or otherwise distributed in this state by or on behalf of the non-reporting entity during the preceding calendar year is equal to the total number of new registrations during the period in question of all vehicles manufactured or distributed by the non-reporting entity as derived from the records of the Department of Motor Vehicles.

Note: Authority cited: Section 472.5(f), Business and Professions Code. Reference: Section 472.5(c), Business and Professions Code.

s 553.70. Payment of Fees.
The New Motor Vehicle Board shall determine the fee to be assessed per vehicle by dividing the dollar amount necessary to fully fund the certification program for the Arbitration Certification Program by the number of new motor vehicles sold, leased, or otherwise distributed in California during the preceding calendar year. For calendar year 2004, the fee shall be $.41 per vehicle.
Upon receipt of the information required by Section 553.50(a), or as determined by section 553.60, the New Motor Vehicle Board shall send a written notice by certified mail, return receipt requested, to manufacturers and distributors subject to the fee assessment stating the number of new motor vehicles distributed by the manufacturer or distributor and the amount of the fee to be paid.
Payment of the fee shall be made to the New Motor Vehicle Board no later than thirty (30) days after the date of receipt of the notice.

Note: Authority cited: Section 472.5(f), Business and Professions Code. Reference: Sections 472.5(b), (c) and (e), Business and Professions Code.

s 553.71. Delinquency of Payment.
If the fee is not paid within the time period specified in Section 553.70 such fee is delinquent. If the fee is not paid within thirty (30) days after it becomes delinquent, a penalty of ten (10) percent of the amount delinquent shall be added thereto.

Note: Authority cited: Section 472.5(f), Business and Professions Code. Reference: Sections 472.5(b), (c) and (d), Business and Professions Code.

s 553.72. Transmittal of Fees by Mail.
No penalty shall be imposed for delinquent payment of any fee required to be paid under this article in the event any instrument for effective payment of such fee is placed in the United States mail or in any postal box maintained by the United States Postal Service with sufficient identification, in an envelope with postage thereon prepaid and addressed to the New Motor Vehicle Board, 1507 21st Street, Suite 330, Sacramento, California, 95814 prior to the date the fee becomes delinquent.

Note: Authority cited: Section 472.5(f), Business and Professions Code. Reference: Sections 472.5(b) and (d), Business and Professions Code.

s 553.75. Noncompliance.
The New Motor Vehicle Board may consider any failure of a manufacturer or distributor to comply with any provisions of this Chapter to be good cause to exercise its authority pursuant to Vehicle Code Section 3050(c).

Note: Authority cited: Section 472.5(f), Business and Professions Code; and Section 3050, Vehicle Code. Reference: Sections 472.5(b) and (f), Business and Professions Code; and Section 3050(c), Vehicle Code.

s 554. Petitioners.
Any person, including a board member, concerned with the activities or practices of any person applying for or holding a license as a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, distributor branch, or representative, may file a written petition with the board requesting that the board consider such matter and take an action thereon.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 555. Contents.
The petition shall set forth in clear and concise language the nature of the matter which the petitioner wishes the board to consider. The petition shall comply substantially with the following requirements:
(a) Include the name, mailing address and telephone number of the petitioner; the name, mailing address and telephone number of his or her attorney or authorized agent if any, and the name and address of the licensee or applicant for license (hereinafter referred to as "respondent") whose activities or practices are in question. All correspondence with petitioner and notices to petitioner shall be addressed to petitioner's said address, if he or she appears in person, or to the address of his or her attorney or agent, if he or she is represented by an attorney or agent. Petitioner shall promptly give the executive director and respondent written notice by mail of all subsequent changes of address or telephone number.
(b) Insofar as is known to petitioner, include the names, residence addresses and business addresses of persons and the dates, places and specific actions or practices involved in the matter.
(c) If the actions or practices described in the petition are believed to be in violation of law, a concise recitation of applicable law and citation to the applicable statutes or other authorities.
(d) If the petitioner desires that the board mediate, arbitrate or resolve a difference between the petitioner and respondent, recite that fact and describe the relief or disposition of the matter which petitioner would consider acceptable.
(e) The petitioner may submit, as exhibits to the petition, photographic, documentary or similar physical evidence relevant to the matter referred to in the petition, in which event an appropriate description of the exhibits shall be set forth in the petition sufficient to identify them and to explain their relevancy.
(f) The petitioner shall set forth in the petition an estimate of the number of days required to complete the hearing.
(g) The petitioner shall set forth in the petition a request for a prehearing conference if one is desired.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 555.1. Service of Petition upon Respondent(s).
A copy of the petition shall be served upon the respondent(s) and proof of service (in compliance with Sections 1013(a) and 2015.5, Code of Civil Procedure) thereof shall accompany the petition filed with the executive director of the board.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 556. Form and Filing of Petition.
The form of the petition shall conform with the provisions of Article 6 hereof. The petition shall be filed with the executive director of the board.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 557. Notice to Respondent: First Consideration.
(a) Upon the filing of a petition with the board, a copy of the petition shall be transmitted by the executive director of the board to each member of the board for consideration. Unless, within 10 days of receipt of a copy of the petition, any member of the board notifies the executive director of an objection, the executive director shall set the matter for a hearing before an administrative law judge designated by the board.
(b) If any member of the board gives notice of objection within 10 days of receipt of a copy of a petition, the petition shall be first considered by the board at its next meeting to determine what action shall be taken in regards to the petition. Upon receipt by the executive director of a notice of objection, the executive director shall notify the parties named in the petition that there has been an objection and that the matter will be considered by the board at its next meeting. The parties shall also be given a minimum of 10 days prior notice of the time, date, and location of the board meeting at which the petition will be considered.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 558. Answer-Time of Filing; Form and Content.
(a) The respondent shall file with the executive director of the board a written answer to the petition, in the form prescribed by Article 6 hereof. The answer shall be filed within 30 days of the date of service of the petition on the respondent.
(b) The answer shall be responsive to the allegations of the petition and shall set forth in clear and concise language the factual contentions of the respondent with respect to the matter referred to in the petition.
(c) The respondent may submit, as exhibits to the answer, photographic, documentary or similar physical evidence relevant to the matter in support of the answer with an appropriate description thereof in the answer sufficient to identify them and to explain their relevancy.
(d) The respondent shall set forth in the answer its mailing address and telephone number and the name, mailing address and telephone number of its attorney or authorized agent, if any. All correspondence with respondent and notices to respondent shall thereafter be addressed to said address, if it appears in person, or to the address of its attorney or agent, if it is represented by an attorney or agent. Respondent shall promptly give the executive director and petitioner written notice by mail of all subsequent changes of address or telephone number.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 559. Shortening Time.

s 560. Extension of Time and Continuances.
(a) In the event a party desires additional time for the performance of any act, or a continuation of any proceeding contemplated by these rules, the party shall either make application in writing to the board for such extension or continuance, stating the reason therefor and the additional time requested, or the date to which the continuance is requested, or shall obtain from the other party a written stipulation for the extension or continuance which shall also set forth the reasons therefor and the time requested. The application or stipulation shall be filed with the executive director at least two days prior to the expiration of the period of time in question or the date fixed for the proceeding sought to be continued. If good cause appears therefor, the executive director shall grant the extension or continuance and shall forthwith give notice thereof to the parties by mail; if the extension or continuance is denied, the executive director shall give notice thereof to the parties by mail.
(b) The party applying for an extension or continuance shall serve a copy of the application upon the opposing party, personally or by mail, and shall file with the application an affidavit or certificate of personal service or of mailing of the copy to the opposing party evidencing such service. If the other party wishes to oppose the application, it shall communicate such opposition to the executive director, either orally or in writing, stating its reasons for opposition. The executive director shall consider the reasons stated in opposition in determining whether the application should be granted or denied.

s 561. Additional Evidence and Argument in Support of Petition.
(a) A party wishing to present to the board evidence and/or arguments in addition to that submitted in accordance with Section 555 hereof may, prior to the first consideration of the petition by the board, advise the executive director in writing of its desire to do so by filing with the board not later than ten days before the date set for the first consideration of the petition a request to present such additional evidence and/or arguments.
(b) The request to present additional evidence and/or argument filed pursuant to Section 561(a) hereof shall contain, as applicable:
(1) The names and addresses of witnesses together with a brief statement summarizing their expected testimony;
(2) Copies or reproduction of all documentary or physical evidence, in addition to that already furnished pursuant to Section 555(e) hereof;
(3) A summary of the subject or subjects expected to be covered by argument;
(4) A statement of the reason or reasons why it is desirable for the board to grant the request.
(c) The board may grant a request filed pursuant to Section 561(a) hereof if it determines that its first consideration of the petition would be assisted by such evidence and more argument.
(d) Upon the filing of the request pursuant to Section 561(a) hereof, the board shall, prior to proceeding with the first consideration of the matter, decide whether to grant the request. If the request is granted, the board shall:
(1) Set a time and place for the hearing where the oral or documentary or physical evidence may be heard and presented. Hearings set pursuant to this provision shall be conducted in accordance with Sections 589, 590 and 592 hereof;
(2) Set the time and place where the argument shall be heard by the board.
(e) The Board shall in no event proceed with the first consideration of a petition unless it has reviewed the additional evidence and/or argument submitted pursuant to the provisions of Section 561(d) hereof.

Note: Authority cited: Section 3050, Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 562. Action by the Board.
After considering the matter, the board may do any one or any combination of the following:
(a) Prior to taking final action, direct the executive director to request the petitioner or the respondent, or both, to augment the record, or to appear to offer evidence or oral argument, or both, or to file briefs, in which event the executive director shall give written notice by mail to the parties of the action by the board, the time within which such augmented pleadings or such briefs are to be submitted or the time and place of further hearing.
(b) Prior to taking final action, direct the department to conduct an investigation and submit a written report within thirty days with or without notice thereof to the parties.
(c) Undertake to mediate, arbitrate, or otherwise resolve any honest difference of opinion or viewpoint existing between the petitioner and respondent.
(d) Direct that the department exercise any and all authority or power that it may have with respect to the issuance, renewal, refusal to renew, suspension or revocation of the license and certificate of the respondent as such license and certificate are required under Chapter 4, Division 5 of the Vehicle Code.
(e) Order the petition dismissed, with or without prejudice to the filing of another petition with respect to the same matter, upon such terms or conditions as it may deem just.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 563. Voluntary Dismissal.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(a), Vehicle Code.

s 564. Decision.
The decision shall be in writing. Copies of the decision shall be served on the parties personally or sent to them by certified or registered mail. The decision shall be final upon its delivery or mailing and no reconsideration or rehearing shall be permitted.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Section 3050(c), Vehicle Code.

s 565. Request for Extension of Time; Temporary Ownership or Operation of a Dealership by a Manufacturer, Branch, or Distributor.
(a) After a showing of good cause by a manufacturer, branch, or distributor that it needs additional time to own and operate a dealership within the relevant market area of an independent dealer of the same line-make in preparation for sale to a successor independent franchisee, the board may extend the time period beyond one year.
(b) When a manufacturer, branch, or distributor seeks to request an extension of time, it shall first give notice in writing of that intention to the board and to each franchisee operating a dealership of the same line-make within the relevant market area.
(c) The written notice shall contain, on the first page thereof in at least 12- point bold type and circumscribed by a line to segregate it from the rest of the text, the following statement:
"NOTICE TO DEALER: If you oppose this request, you may send a letter to the NEW MOTOR VEHICLE BOARD in Sacramento and have your opposition considered by the board. You must file your opposition with the board within 20 days of your receipt of this notice."
(d) When a request for extension of time has been received, the board shall notify each franchisee of the same line-make within the relevant market area, as provided by the manufacturer pursuant to subsection (g)(1) below, that a timely request has been received, that the franchisee has the opportunity to send a letter to the board opposing the request and have that opposition considered by the board at its next scheduled meeting, and that the status quo will be maintained until the board acts upon the request for extension.
(e) In determining whether good cause has been shown for granting the request for an extension of time, the board shall take into consideration the existing circumstances, including, but not limited to, all of the following:
(1) The written request of the manufacturer, branch, or distributor;
(2) Written responses in opposition to the request received from any franchisee operating a dealership of the same line-make within the relevant market area; and,
(3) Comments of other interested parties.
(f) Upon the filing of a timely request for an extension of time, a copy of the request for extension shall be transmitted by the executive director of the board to each member of the board for consideration.
(g) The written request for an extension of time shall be accompanied by all of the following:
(1) A list of all franchisees operating a dealership of the same line-make within the relevant market area.
(2) A statement of facts detailing the specific need for the extension of time.
(3) The requested expiration date of the extension.
(4) A chronology of the actions both taken and planned by the manufacturer, branch, or distributor to prepare for the sale of the franchise to a successor independent franchisee.
(5) A statement to the effect that the information required in subsections (g)(2)-(4) above has been provided to each franchisee operating a dealership of the same line-make within the relevant market area.
(6) A statement that the requesting party does or does not agree that the dealer members of the board may participate in the consideration of the request.
(h) The executive director shall grant the extension unless, within 30 days from receipt of the request for extension, any member of the board notifies the executive director of an objection or the board receives a written response in opposition to the request from any franchisee operating a dealership of the same line-make in the relevant market area.
(i) If any member of the board gives notice of objection within 30 days of receipt of a copy of the request for extension, or if the board receives a timely written opposition to the request from any franchisee operating a dealership of the same line-make within the relevant market area, this matter shall be considered by the board at its next scheduled meeting.
(j) Upon receipt by the executive director of a notice of objection and/or a written opposition from any franchisee operating a dealership of the same line-make within the relevant market area, the executive director shall notify the manufacturer, branch, or distributor that there has been an objection and/or opposition, that the matter will be considered by the board at its next scheduled meeting, and that the status quo will be maintained until the board acts upon the request for extension. The manufacturer, branch, or distributor, and opposing franchisee(s), if any, operating a dealership of the same line-make within the relevant market area shall be given a minimum of 10 days' prior notice of the time, date, and location of the board meeting at which the request for extension will be considered.
(k) Notwithstanding subsections (h), (i) and (j) above, a member of the board who is a new motor vehicle dealer may not participate in, hear, comment, advise other members upon, or decide any matter involving a request subject to this subsection, unless the requesting party to the proceeding has had full disclosure and agrees to such participation by the dealer board member.
(l) On or before 60 days prior to the expiration of the one year period, the manufacturer, branch, or distributor may request an extension of time for good cause shown which shall be in writing. Requests received with less than 60 days' prior notice will not be considered by the board and shall be deemed denied.
(m) Within 20 days of receiving the notice, any franchisee required to be given notice may file an opposition to the request for an extension of time.

Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Sections 3050 and 11713.3, Vehicle Code.

s 566. Time of Filing Notice of Appeal.
Notice of appeal shall be filed with the executive director of the board on or before:
(a) Forty days after delivery or registered mailing to appellant the decision appealed from, if its effective date is thirty days following service upon the appellant; or
(b) Ten days after the effective date of the decision appealed from, if such date is prior to the expiration of the 30-day period; or
(c) Ten days after the expiration of any stay of execution of the entire decision granted by the department.

s 567. Form.
Notice of appeal shall be in writing and signed by appellant or appellant's attorney. It shall conform with the provisions of Article 6 hereof.

s 568. Contents of Notice of Appeal.
Notice of appeal shall set forth in concise language the following:
(a) That appellant is an applicant for, or a holder of, a license as a new car dealer, manufacturer, manufacturer branch, distributor, distributor branch or representative, as defined in Sections 426, 672, 389, 296, 297 and 512 Vehicle Code, respectively.
(b) Those portions of Sections 3054 or 3055 Vehicle Code providing basis for appeal.
(c) That appellant has applied to the Office of Administrative Hearings for the complete administrative record or those portions that appellant desires to file with the board and has advanced costs of preparation thereof; or, in lieu thereof, that the case is being submitted on an agreed statement.
(d) If the appeal is based in whole or in part on Section 3054(e), Vehicle Code, a statement that appellant desires to produce before the board relevant evidence which in the exercise of reasonable diligence could not have been produced or which was improperly excluded at the hearing.
(e) That appellant either does or does not desire to appear before the board.

s 569. Affidavit in Support of Appeal Based on Section 3054(e), Vehicle Code.
Where the notice of appeal contains the statement required by Section 568(d), the notice of appeal shall be supported by an affidavit of the appellant setting forth the matters in either (a) or (b) of this section, or both, as appropriate:
(a) A statement that there is evidence which was not available at the administrative hearing through the exercise of reasonable diligence; the substance of the evidence; the relevance of the evidence to a disputed issue; and a full explanation of why the evidence was not produced at the administrative hearing.
(b) A statement that there is evidence which was rejected at the administrative hearing; the substance of the evidence; the relevance of the evidence to a disputed issue; and a statement of the evidence establishing that the proffered evidence was, in fact, presented at the administrative hearing and was rejected despite a duly made offer of proof.

s 570. Service of Notice upon Department.
(a) A copy of the notice of appeal and all supporting affidavits shall be served upon the department and proof of service shall accompany the notice filed with the executive director of the board.

s 571. Filing with Board the Administrative Record.
(a) Upon receipt from the Office of Administrative Hearings, appellant shall forward forthwith to the executive director the original and three copies of the complete administrative record which shall consist of the reporter's transcript and all the pleadings and exhibits received at the administrative hearing. In lieu thereof, appellant may forward those parts of the administrative record which appellant deems necessary to support its appeal. If the case is being submitted on an agreed statement, only the accusation and director's decision need be forwarded.
(b) If appellant files a partial administrative record, it shall serve, prior to or at the time of filing such partial record, written notice on the department of those portions of the record that appellant will file with the board and proof of service of such notice shall be filed with the executive director.
(c) The department may file any additional portions of the administrative record that it deems necessary to make an adequate presentation of its case. Such filing shall consist of the original and three copies and shall be no later than ten (10) days after notification by appellant of those portions of the record that appellant is filing unless, for good cause shown, the executive director grants additional time. Prior to or at the time the department files additional portions ofthe administrative record with the board, notice shall be served by the department on appellant of such additional portions and proof of service of such notice shall be filed with the executive director. (continued)