Loading (50 kb)...'

(continued)
(b) A BPA contract shall be in effect for thirty-six (36) months. A renewal application and new BPA contract shall be required for each subsequent permit. The renewal application process may be started one hundred and twenty (120) days before the BPA contract and permit expire.
(c) Should any provision of the BPA contract, statute or regulations be deemed illegal or unenforceable, all remaining provisions of the BPA contract, statutes, and regulations shall remain in effect.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1653 and 1685, Vehicle Code.


s 225.15. BPA Permit Authority.
(a) No person shall act as a business partner who is not a party to a currently valid BPA contract.
(b) A BPA permit shall be issued to each first-line business partner, first-line service provider and second-line business partner for each site location that the department has determined meets the qualifications to enter into a BPA contract. Upon the execution of the BPA contract, the department will issue a BPA permit. The BPA permit shall identify the business as an authorized business partner.
(c) The Authorized Business Partner Permit form, REG 4027 (Rev. 6/2002) shall be displayed within view of the business partner's customers.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1652, 1653 and 1685, Vehicle Code; and 15376, Government Code.


s 225.18. Cause for Refusal to Enter into a Contract and Issue a Permit.
(a) The failure of an applicant to establish its honesty, integrity, good character and reputation to the satisfaction of the department is good cause for the department to refuse to enter into a BPA contract with such applicant.
(b) The failure of an applicant to establish the honesty, integrity, good character and reputation of any of its owners or employees to the satisfaction of the department is good cause for the department to refuse to enter into a BPA contract with such applicant.
(c) The information provided on a Statement of Personal History form, REG 4019 (Rev. 11/2002), the message(s) from DOJ in response to a fingerprint check and/or other information obtained by the department may be the basis for approval or disapproval of a business partner, business partner owner(s) or employee(s) in meeting the standards stated in Section 1685(b)(2)(B) of the Vehicle Code to participate in the BPA.
(d) There is good cause for the department to refuse to enter into a BPA contract with a business partner applicant if the applicant, one of its owners or employees:
(1) Has been convicted of a felony or a crime, or committed an act or engaged in conduct involving moral turpitude that is substantially related to the function of a BPA business partner.
(2) Is or has been the holder of an occupational license issued by the department that has been suspended or revoked.
(3) Is or has been a managerial employee of an occupational licensee licensed by the department that has been suspended or revoked.
(4) Is or has been a commercial requestor or one of its owners that has been suspended or revoked.
(5) Has failed to comply with their BPA contract or failed to complete any of the audit requirements of Section 225.63 of these regulations.
(6) Has used a false name, made any false statement, or concealed any material fact in any BPA application or statement of personal history.
(7) Has displayed, caused or permitted a sign, mark or advertisement, or used a "Doing Business As" (DBA) in violation of Section 25 of the Vehicle Code.
(8) Has permitted or engaged in fraudulent practices or acts, with reference to clients, members of the public or the department.
(9) Has committed or was responsible for any other act, occurrence, or event in California or any foreign jurisdiction that provides cause for refusal to issue a permit.
(10) Has failed to comply with Section 1685, of the Vehicle Code; Division 5, (commencing with Section 11100) of the Vehicle Code, has violated Article 3, commencing with Section 1800, Chapter 1, Division 2 of the Vehicle Code or any regulation adopted under these statutes.
(11) Was a departmental employee dismissed by the department for cause related to honesty, integrity, good character and reputation of the person dismissed by the department.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1653 and 1685, Vehicle Code.


s 225.21. Review of Criminal History Information.
(a) In reaching a decision on approval or disapproval of a business partner owner or employee to participate in the BPA, the BPA Program Administrator or a designee may review and consider the criminal history information provided by the California Attorney General pursuant to Section 11105(b)(9) of the Penal Code. This information may be used as part of the department's process in reaching a decision as it relates to Sections 225.00 et seq. of these regulations. The BPA Administrator or designee will consider the "Occupational Licensing and Disciplinary Guidelines" (Rev. 3/98) incorporated by reference in Section 440.04, Article 6.1, Chapter 1, Division 1, Title 13, of the California Code of Regulations in reaching a decision.
(1) Deviation from the Guidelines is appropriate when the Director or designee, in his or her sole discretion, determines that the facts warrant such a deviation, for example, the presence of mitigating factors, how long ago the conduct, action, or offense occurred, evidentiary problems and customer complaints.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.24. Failure to Meet Security Requirements.
The failure of an applicant or a business partner to comply with the information security requirements identified in Section 225.51 shall be good cause for the department to cancel, terminate or refuse to enter into a BPA contract with such business partner applicant.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.27. Transaction Access.
(a) The processing of vehicle registration and titling transactions and issuing of vehicle registration indicia and documents by a business partner requires access to the department's data communication system and the vehicle registration and BPA inventory databases through a network approved by the department.
(b) A business partner's interface access shall be compatible with the department's interface. Equipment and software to access and interface with the department's databases shall be the responsibility of the business partner.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1653 and 1685, Vehicle Code.


s 225.30. Electronic Fund Transfer.
(a) A business partner shall execute and comply with all terms and conditions of the Electronic Fund Transfer Authorization Agreement for Pre-Authorized Payments (09/04/02) (EFT contract) that provides for payment to the department of the fees collected by the business partner and due to the department.
(1) The first-line business partner shall authorize the department to initiate debit entries into the account identified in the EFT contract for payment of all fees collected for and due to the department.
(2) The first-line service provider shall authorize the department to initiate debit entries into the account identified in the EFT contract for payment of all fees collected by its second-line business partners for payment of all fees collected for and due to the department.
(3) When the department is notified by the financial institution of insufficient funds or closed account status, the department shall suspend interface access until payment of all fees and charges. Applicable bank service charges, in addition to a thirty dollar ($30) (returned item) charge, shall be paid to the department.
(4) When the business partner is notified by the department of its insufficient funds or closed account status, the business partner shall make a same-day reimbursement by wire transfer. The reimbursement shall include the exact amount of the electronic billing, the thirty dollar ($30) (returned item) charge, wire transfer processing fee charged to the department by the depository, and any applicable bank service charges.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.33. Use and Retention of Information.
(a) A business partner shall not use any information received from a customer or the department for any purpose other than the purposes authorized by this article.
(b) All information shall be treated as confidential or restricted information and shall retain the protections provided by Vehicle Code sections 1808.21, 1808.45, 1808.46 and 1808.47.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1798.26, Civil Code; and Sections 1685, 1808.21, 1808.45, 1808.46, 1808.47, 1810, 1810.7 and 1811, Vehicle Code.


s 225.35. Renewal.
(a) A business partner renewal applicant shall complete and submit the following to the BPA Program Administrator prior to the expiration of the contract and permit term:
(1) A completed and signed Business Partner Automation Program Renewal Application form, REG 5056 (NEW 2/2005), which is hereby incorporated by reference.
(2) A completed and signed Information Security and Disclosure Statement (Firm) form, EXEC 201X (REV. 3/2003).
(3) A copy of the business partner's valid occupational license form, OL 39 (REV 7/2004), if applicable.
(4) A non-refundable renewal application fee of one hundred and ninety-eight dollars ($198). Checks shall be made payable to the Department of Motor Vehicles.
(b) A renewal application shall be received within thirty (30) days of the expiration date on the BPA Permit form, REG 4027 (REV. 6/2002). Applications received after that date shall be required to comply with the original application requirements as specified in section 225.03 in these regulations. The Business partner shall not process any transactions after the expiration of the contract and permit without the completion and approval of the BPA renewal or original application.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.36. Change of First-Line Service Provider.
(a) If a second-line business partner requests to change the first-line service provider identified in the BPA contract, the second-line business partner shall complete and submit to the BPA Program Administrator a request for a change in the BPA contract on the Business Partner Automation Program Service Provider Change form, REG 4022 (Rev. 11/2002), which is hereby incorporated by reference. The request shall be completed, signed and submitted to the BPA Program Administrator no less than twenty (20) days prior to any change of service provider.
(b) The department will process the requested change if the proposed first-line service provider is currently authorized by the department to act as a first-line service provider and the requirements of Section 225.36(a) of these regulations are met.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1652, 1653 and 1685, Vehicle Code.


s 225.39. Business Partner Responsibilities.
(a) First-line service providers shall be responsible for:
(1) Providing oversight for their second-line business partners to ensure they are in compliance with the terms and conditions of their BPA contracts.
(2) Ensuring that their prospective second-line business partners submit all application requirements pursuant to Section 225.03 of these regulations.
(3) Ordering and distributing inventory for their second-line business partners.
(4) Establishing an automated inventory tracking and assignment system to track accountable inventory shipped to the first-line service provider or their second-line business partner. The automated inventory tracking and assignment system shall be capable of recording the date received, status, and location of all accountable inventory.
(5) Tracking and monitoring the issuance of accountable and controlled inventory assigned to their second-line business partners.
(6) Ensuring that none of their second-line business partners have more than a three (3) month supply of inventory in their possession at any time.
(7) Submitting comprehensive quarterly physical inventory reports for their second-line business partners on a "Physical Inventory Non-DMV Entities" form, ADM 175A (rev. 2/2002).
(8) Establishing security awareness and education programs and measures to ensure that all of their second-line business partners are aware of the first-line service provider's procedures for protecting the confidentiality of records.
(9) Ensuring that all of their second-line business partners have implemented the physical security required in this article and by the BPA contract to prevent and discourage inadvertent or deliberate alteration, disclosure, destruction, loss, misuse, or theft of DMV records, proprietary assets, and accountable and controlled items in their possession.
(10) Controlling access to the department's vehicle registration and titling and inventory databases by use of an authentication credentialing system that shall identify, authenticate and authorize access for each individual user.
(11) Providing registration and titling training for their second-line business partners authorized to participate in the BPA program.
(12) Auditing and reconciling transactions processed by their second-line business partners.
(13) Submitting all transactions to the department within twenty (20) days of the date the transaction was processed.
(14) Ensuring that all of their second-line business partners comply with the advertising requirements identified in any agreement with the department.
(15) Submitting all fees collected for and due to the department.
(b) Whenever the State examines, audits or investigates any second-line business partner, the second-line business partner shall pay, within thirty (30) days after receipt of a statement from the State, the reasonable costs incurred by the State for the performance of the examination, audit or investigation, including, but not limited to:
(1) The reasonable amount of the salary and/or other compensation paid to the persons making the examination, audit or investigation.
(2) The reasonable expenses for travel, meals and lodging of the persons making the examination, audit or investigation.
(3) The reasonable amount of any other expenses, including overhead.
(c) When the second-line business partner fails to pay the department for the examination, audit or investigation within the thirty (30) days as required in Section 225.39(b) of these regulations, the first-line business partner that provides the interface access to the department for the second-line business partner shall be billed by the department and have thirty (30) days from the billing date to pay for the examination, audit or investigation.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1652, 1653, and 1685, Vehicle Code.


s 225.42. Business Partner Changes.
(a) A business partner shall notify the BPA Program Administrator within the timeframes identified for the changes listed in Sections 225.42(a)(1) through (7) of these regulations on a Business Partner Automation Program Application for Changes form, REG 4026 (Rev. 11/2002), which is hereby incorporated by reference. The completed and signed Business Partner Automation Program Application for Changes form shall be sent by US Mail or private courier to the Department of Motor Vehicles, BPA Program Administrator, 2415 1st Avenue, MS E383, Sacramento, CA 95818. The following changes shall be entered on the Business Partner Automation Program Application for Changes form:
(1) Closing a site, identified by the site identification number. The business partner shall notify the BPA Program Administrator no more than five (5) days after the closure of the site.
(2) Changing the business, corporate, or Limited Liability Company name. The business partner shall notify the BPA Program Administrator no more than twenty (20) days after the effective date of the name change.
(3) Adding a site. A nonrefundable processing fee of one hundred and seventy-five dollars ($175) shall be submitted to the BPA Program Administrator with the Business Partner Automation Program Application for Changes form when a business partner adds a site after entering into a BPA contract.
(4) Changing the address of a principal place of business or site. The business partner shall notify the BPA Program Administrator no less than twenty (20) days prior to the address change.
(5) Adding an employee. A business partner shall not permit an employee to access DMV inventory or data unless the business partner has complied with the requirements of Section 225.03(d) of these regulations and has received approval from the department under Section 225.18(c) for the employee to have access to DMV inventory and data.
(6) Deleting an employee. The business partner shall notify the BPA Program Administrator no more than five (5) days after deleting an employee from the BPA program. The business partner shall identify the reason for deleting an employee.
(A) A business partner who terminates an employee for cause related to honesty, integrity, good character and reputation, pursuant to Vehicle Code section 1865, shall notify the BPA Program Administrator no more than one (1) day after the termination date.
(B) A business partner who terminates an employee for cause unrelated to honesty, integrity, good character and reputation, pursuant to Vehicle Code section 1865, shall notify the BPA Program Administrator within five (5) day after the termination date.
(7) Changing controlling director(s) and/or officer(s); changing member(s) of a Limited Liability Company; changing management and/or supervising BPA personnel; or changing partner(s) or stockholder(s). The business partner shall notify the BPA Program Administrator no more than twenty (20) days after the effective date of the change.
(b) A business partner shall notify the BPA Program Administrator in a signed and written notification on business partner letterhead and sent by facsimile, US mail, or private courier at least twenty (20) days prior to the effective date of the following changes:
(1) Change of "Doing Business As" (DBA) name.
(2) Change of mailing address.
(c) A business partner shall notify the BPA Program Administrator in a signed and written notification on business partner letterhead and sent by facsimile, US mail, or private courier no more than five (5) days after the effective date of the following changes:
(1) Change of operations contact person.
(2) Change of registered agent for service of process.
(d) A business partner shall notify the BPA Program Administrator in a signed and written notification on business partner letterhead and sent by facsimile, US mail, or private courier at least sixty (60) days prior to the effective date of a change of the account number identified pursuant to Section 225.30 of these regulations.
(1) A change of the account number shall require a new EFT contract pursuant to Section 225.30 of these regulations.
(e) The business partner shall notify the BPA Program Administrator in a signed and written notification on business partner letterhead and sent by facsimile, US mail, or private courier within seven (7) days of a change of telephone number.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1652, 1653 and 1685, Vehicle Code.


s 225.45. Customer Fees.
(a) A business partner shall complete a Business Partner Automation Disclaimer form, REG 4020 (Rev. 1/2004) for each DMV transaction when a customer fee is charged.
Exceptions: (1) A business partner completing a conditional sales contract or lease agreement pursuant to Civil Code section 2982, 2982.5 or 2985.8 may disclose the amount of any optional Business Partnership Automation program fee to process transactions identified in Section 225.45(b)(1) through (3) of these regulations using the sales contract or lease agreement in place of the Business Partner Automation Disclaimer form. (2) A business partner acting as a salvage pool, as specified in Vehicle Code Section 543, shall be exempt from completing the form. (3) A business partner acting as a licensed registration service, as specified in Vehicle Code Section 505.2, may disclose the amount of any optional Business Partnership Automation program fee to process transactions identified in Section 225.45(b)(1) through (3) of these regulations using the methods required under Section 330.30, of Title 13 in the California Code of Regulations in place of the Business Partner Automation Disclaimer form.
(1) The business partner shall obtain the customer's signature on the form after the business partner enters on the form the fee amount that the business partner is charging to process the transaction.
(2) The business partner shall provide the completed original of the Business Partner Automation Disclaimer form to the customer, shall keep a completed copy, and shall send a copy to the department with the transaction documents. Voided copies of the form shall be retained with the completed copies kept by the business partner pursuant to Section 225.60 of these regulations.
(3) The Business Partner Automation Disclaimer form is hereby incorporated by reference.
(b) A customer may be charged the following maximum amounts for each type of transaction processed through to completion by a business partner.
(1) Licensed vehicle dealers and licensed dismantlers may charge up to $25 for any transaction authorized under the Business Partnership Automation Program, in addition to any other fees authorized by statute.
(2) Licensed registration services may charge up to $25 for a registration renewal or new vehicle report of sale transaction, up to $75 for a junk vehicle transaction, and up to $75 for any other authorized transaction.
(3) Salvage pools may charge up to $75 for salvage and non-repairable vehicle certificates.
(c) Business partners are not authorized to charge a fee for Vehicle License Fee refund transactions.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.48. Transaction Fee.
(a) A first-line business partner and a first-line service provider shall pay a transaction fee to the department, pursuant to subdivision (d) of Vehicle Code section 1685, in the amount of three dollars ($3) for each transaction processed through to completion. The transaction fee may be charged to the customer in addition to the customer fees authorized in Section 225.45 of these regulations.
Exception: Payment of a transaction fee for vehicle license fee refund transactions shall not be required.
(b) The transaction fee shall be paid to the department by the due date designated on the billing notice. The payment of the fee based on the billing notice shall be sent by traceable mail to the Department of Motor Vehicles, BPA Program Administrator, 2415 1st Avenue, MS-E383, Sacramento, CA 95818.
(c) Upon notification of insufficient funds or closed account status for the payment of transaction fees or failure to pay by the due date designated on the billing notice, the department shall suspend interface access until payment for all fees and charges is received.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.51. Information Security Requirements.
(a) A business partner, its owners and employees shall comply with the department'sIT Security Guidelines for Use in BPA Program(January 2004), which is hereby incorporated by reference, when processing transactions through the American Association of Motor Vehicle Administrators AAMVAnet conduit. A business partner, its owners and employees shall comply with the department'sCalifornia DMV Security Requirements for the Internet -Business Partners(Revised November 2004), which is hereby incorporated by reference, when processing transactions through the Internet.
(b) A business partner, its owners and employees shall comply with the Information Practices Act of 1977 (Section 1798 et seq. of the Civil Code), the Public Records Act (Section 6250 of the Government Code), Sections 1808.21 and 1808.47 of the Vehicle Code, Sections 11015.5 and 11019.9 of the Government Code, and any and all related statutes pertaining to information security.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1798.19, Civil Code, Sections 6250, 11015.5, 11019.9, Government Code; and Sections 1685, 1808.21 and 1808.47, Vehicle Code.


s 225.54. Transaction Procedures and Inventory Requirements.
A business partner shall process transactions and control inventory according to the "Business Partner Automation Program Transaction Procedures and Inventory Requirements Handbook" (Revised April 13, 2005), which is hereby incorporated by reference.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.57. Inventory.
[Reserved for future use.]



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.60. Retention of Business Records.
(a) Each business partner shall maintain all business records related to the BPA program. These records shall be retained for the term of the BPA contract in which they pertain, for three (3) years following the termination, cancellation or expiration of the BPA contract and during any ongoing examination, audit and investigation pursuant to Sections 225.63 and 225.66 of these regulations.
(b) Upon the department's request, all business records shall be immediately made available during normal business hours to the department's representative.
(1) A business partner's out-of-state site locations may be issued a permit only if the business partner agrees in writing, and subject to the sole discretion of the BPA Program Administrator, to (1) make the business records available in California for an examination, investigation or to complete an audit or (2) pay the reasonable costs of an examination, audit or investigation, including but not limited to the expenses for travel, meals and lodging of the department's representative incurred during an investigation or audit made at the business partner's out-of-state location.
(c) A business partner shall retain the business records at the business partner's principal place of business.
(d) The business records required to be maintained by the business partner under the terms of the BPA contract are records of the department.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.63. Audit Requirements.
(a) A business partner shall hire an independent auditor to perform three (3) compliance audits during the term of the BPA contract. The audits shall be conducted by an independent auditor in accordance with generally accepted government auditing standards and the department's BPA Audit Plan, which consists of the Independent Audit Plan (August 30, 2002) and Independent Audit Program (August 30, 2002). The independent auditor shall keep confidential the department's business practices obtained in the course of an audit.
(1) The department may accept the Business Partner Automation Program Audit Self Certification form, REG. 4016 (NEW 8/2002), which is hereby incorporated by reference, in lieu of a compliance audit from second-line business partners only.
(A) The second-line business partner shall submit a Business Partner Automation Program Audit Self Certification form, REG. 4016 (NEW 12/2002) to the BPA Program Administrator. A copy of the form shall be submitted to the first-line service provider and the Electronic Oversight Branch at the address indicated in Section 225.63(c).
(B) The Business Partner Automation Program Audit Self Certification form shall be submitted when an audit is due as set forth in Section 225.63(a)(2) of these regulations.
(2) An audit is required for each twelve (12) month period of the BPA contract. Each audit shall be completed within ninety (90) days of the end of each twelve (12) month audit period. A copy of the audit report, including any findings and recommendations, shall be submitted to the department within sixty (60) days of completion of each audit.
(3) The independent auditor shall be licensed as a certified public accountant in good standing in the state where the site is located.
(4) The independent auditor shall not be part of the ownership or involved in the operation or overview of any part of the business partner's business(es).
(b) The independent auditor shall sign a Representative Non-Disclosure Statement form, REG4028 (NEW 3/2002) agreeing to protect as confidential information all department records and information including, but not limited to, residence/mailing addresses.
(1) The Representative Non-disclosure Statement form shall be kept with the business partner's BPA business records and available for audit.
(2) The Representative Non-Disclosure Statement form is hereby incorporated by reference.
(c) The independent auditor shall provide the business partner audit report, the independent auditor's findings and any suggested corrective action plan or audit response developed by the business partner to the department at the following address: Electronic Oversight Branch, Executive Division, Department of Motor Vehicles, 2750 24th Street, MS H121, Sacramento, CA 95818.
(1) Audits of second-line business partners shall require that a copy of the audit report, findings and any suggested corrective action plan or audit response be sent to the department and the first-line service provider by the independent auditor. The first-line service provider shall retain and maintain a copy of the audit report and corrective action plan or audit response pursuant to Section 225.63.
(d) A business partner shall inform the BPA Program Administrator when an independent auditor is no longer employed by the business partner to perform an audit. This notice shall be sent within seven (7) days of release of the independent auditor. The signed and written notice on business partner letterhead shall be sent by facsimile, US mail, or private courier when an independent auditor is released from service.
(e) A business partner's principal place of business shall be open during normal business hours for an electronic or manual audit of the records required to be retained immediately upon a request from the State.
(f) The department may conduct a standard random audit to verify compliance without reimbursement from a business partner.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.66. Investigation and Review.
(a) The department may exercise any and all authority and powers available to it under any other provisions of law to administer and enforce this article, including, but not limited to, examining, auditing and investigating the business partner's books and records, and charging and collecting the reasonable costs for these activities. Any civil, criminal, and administrative authority and remedies available to the department may be sought and employed in any combination deemed advisable by the department to enforce the provisions of this article. Nothing in this section shall be construed to impair or impede the department's authority under any other provision of law.
(b) The State may examine, audit, or investigate a business partner's activities under Vehicle Code section 1685, these regulations, and any agreement between a business partner and the State even if the BPA contract is terminated, cancelled or expires. The examination, audit or investigation may relate to any matter, including, but not limited to, procedures, operations and finances relating to the business partner activity. The business partner shall make available to the State all of its records and reports relating to the conduct of the activity, whether hard copy, or stored in electronic media. Failure by a business partner to comply with the provisions of this section shall be cause for immediate termination of a business partner's authorization to process transactions as a business partner.
(c) Whenever the department examines, audits or investigates any business partner, that business partner shall pay, within thirty (30) days after receipt of a statement from the department, the reasonable costs incurred by the department for the performance of the examination, audit or investigation, including, but not limited to:
(1) The reasonable amount of the salary and/or other compensation paid to the persons making the examination, audit or investigation.
(2) The reasonable expenses for travel, meals and lodging of the persons making the examination, audit or investigation.
(3) The reasonable amount of any other expenses, including overhead.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.69. Cancellation or Termination of a BPA Contract and Permit.
(a) A first-line business partner and first-line service provider shall cancel a BPA contract and permit by notifying the BPA Program Administrator in a signed and written notification on business partner letterhead and sent by facsimile, US mail, or private courier no less than thirty (30) days prior to the cancellation.
(1) A second-line business partner shall cancel a BPA contract and permit by notifying its first-line service provider and the BPA Program Administrator in signed and written notifications on business partner letterhead and sent by facsimile, US mail, or private courier no less than thirty (30) days prior to the cancellation.
(b) The department may terminate a BPA contract and permit at any time without notice for any cause listed in Section 225.18 of these regulations.
(1) A business partner terminated for cause may not submit a new application until one year after the date its BPA contract was terminated by the department for cause.
(c) The department may terminate a BPA contract and permit without cause upon thirty (30) days written notification to a business partner.
(d) Upon the department's request, regardless of the reason, or upon the termination, cancellation or expiration of the BPA contract, a business partner shall immediately discontinue the use of electronic interface access and the issuance of any and all DMV inventory, including, but not limited to, license plates, stickers and DMV95A paper.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 225.72. Voluntary Closing.
(a) A first-line service provider shall comply with the following procedures to close a site location within thirty (30) days of cancellation or expiration of the BPA contract:
(1) The first-line service provider shall collect all unassigned accountable and controlled inventory from all of its second-line business partner sites.
(2) The first-line service provider shall complete a Physical Inventory (Non-DMV Entities) form, ADM175A (Rev. 2/2000), by recording all of the unassigned accountable inventory on the form and signing the form.
(3) The first-line service provider shall update the status of its accountable inventory on the BPA Inventory Database system.
(4) The first-line service provider shall return the Physical Inventory (Non-DMV Entities) form and all accountable inventory by trackable US mail or private carrier to: Department of Motor Vehicles, Automated Inventory Management Systems Unit, 2570 24th Street, MS G202, Sacramento, CA 94232-3820.
(5) The first-line service provider shall return all controlled inventory by trackable US mail or private carrier to: Department of Motor Vehicles, Inventory Management, 4201 Sierra Point Drive, Suite 112, Sacramento, CA 95834.
(6) The first-line service provider shall return all transactions and supporting documentation by trackable US mail or private carrier to: Department of Motor Vehicles, Manager Field Office Support Unit, 2415 1st Ave, MS E250, Sacramento, CA 95818.
(7) The first-line service provider shall return the permit by trackable US mail or private carrier to: Department of Motor Vehicles, BPA Program Administrator, 2415 1st Avenue, MS E383, Sacramento, CA 95818.
(b) A first-line business partner shall comply with the following procedures to close a site location within thirty (30) days of cancellation or expiration of the BPA contract.
(1) The first-line business partner shall collect all unassigned accountable and controlled inventory from all branch site locations.
(2) The first-line business partner shall complete a Physical Inventory (Non-DMV Entities) form, ADM175A (Rev. 2/2000) by recording all unassigned accountable inventory on the form and signing the form.
(3) The first-line business partner shall record the status of its accountable inventory on the BPA Inventory Database system.
(4) The first-line business partner shall return the Physical Inventory (Non-DMV Entities) form and all accountable inventory by trackable US mail or private carrier to: Department of Motor Vehicles, Automated Inventory Management Systems Unit, 2570 24th Street, MS G202, Sacramento, CA 94232-3820.
(5) The first-line business partner shall return all controlled inventory by trackable US mail or private carrier to: Department of Motor Vehicles, Inventory Management, 4201 Sierra Point Drive, Suite 112, Sacramento, CA 95834.
(6) The first-line business partner shall return all transactions and supporting documentation by trackable US mail or private carrier to: Department of Motor Vehicles, Manager Field Office Support Unit, 2415 1st Ave, MS E250, Sacramento, CA 95818.
(7) The first-line business partner shall return the BPA permit by trackable US mail or private carrier to: Department of Motor Vehicles, BPA Program Administrator, 2415 1st Avenue, MS E383, Sacramento, CA 95818.
(c) A second-line business partner and its first-line service provider shall comply with the following procedures to close a second-line business partner site location within thirty (30) days of cancellation or expiration of the BPA contract.
(1) The second-line business partner shall collect all unassigned accountable and controlled inventory and return it to its first-line service provider within seven (7) days of the cancellation or expiration of the BPA contract.
(2) The first-line service provider may redistribute the unassigned accountable inventory to its other second-line business partners.
(3) The second-line business partner shall return all transactions and supporting documentation to its first-line service provider within seven (7) days of the cancellation or expiration of the BPA contract. The first-line service provider shall return all transactions and supporting documentation by trackable US mail or private carrier to: Department of Motor Vehicles, Manager Field Office Support Unit, 2415 1st Ave, MS E250, Sacramento, CA 95818.
(4) The second-line business partner shall return the BPA permit by trackable US mail or private carrier to: Department of Motor Vehicles, BPA Program Administrator, 2415 1st Avenue, MS E383, Sacramento, CA 95818.



Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.


s 250.00. Occupational License Application Requirements.
Occupational license application:
(a) Shall be submitted to the department at any of its locations.
(b) Shall be on the forms prescribed by the department.
(c) Shall be complete and contain the information required in this article.



Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11102, 11102.5, 11104, 11501, 11601, 11602, 11701 and 11704, Vehicle Code.


s 250.02. Time Requirements for Submitting Application.
An applicant for an occupational license or a licensee wishing to change an existing license shall submit the required forms to the department at least three (3) business days prior to the desired effective date of such application or change.



Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11100, 11500, 11600 and 11700, Vehicle Code.


s 252.10. Business License Definition.
A business license is a license issued to any of the following categories: Dealer, lessor-retailer, dismantler, manufacturer, distributor or transporter.



Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11500, 11600 and 11700, Vehicle Code.


s 252.20. Business License Application Requirements.
An application for a business license issued by the department shall contain, but is not limited to, the following:
(a) Name of the business.
(b) Location of the business including street, address, city, and zip code of the principal place of business and any branch locations. Exception: The location of business requirement is not necessary when the applicant only wishes to determine if the department would grant the applicant a license because of previous business or personal irregularities.
(c) Type of business license requested, i.e., dealer, manufacturer, transporter, etc.
(d) If the application is for a dealer's license, then the applicant must specify the type of vehicles to be sold. Also, if new vehicles are to be sold the applicant must include the name or names of vehicles he is enfranchised to sell and the name or names and address of the manufacturer or distributor who has enfranchised the applicant.
(1) All new motor vehicle dealers, except recreational vehicle dealers, shall submit the form required pursuant to Section 3062 of the Vehicle Code.
(e) The type of ownership, i.e., individual, partnership, or corporation. If the applicant is a partnership, then the names and titles of all partners shall be disclosed. If the applicant is a corporation, then the names and titles of all controlling stockholders, directors, and officers who by reason of the facts and circumstances could be directing, controlling, or managing the vehicle marketing affairs of the licensed entity in this state.
(1) Any person required to be identified in subdivision (e) above shall submit to the department a personal history statement and a set of properly completed fingerprint cards on departmental forms. Exception: A corporation which is an applicant for a manufacturer or distributor license and which has authorized and is permitted to sell stock of the corporation to the general public may not be required, upon investigation by the department, to submit fingerprint cards as part of the application.
(2) The following information, but not limited to, shall be on the personal history statement:
(A) The true name of the applicant.
(B) The applicant's residence address, including zip code.
(C) The applicant's business and home telephone numbers.
(D) The applicant's physical description including gender, color of hair, color of eyes, height, weight and birthdate.
(E) If the applicant holds a valid driver's license, the number and state of issuance of such license.
(F) Any name or names the applicant has been known by or used other than the true name appearing on the application.
(G) The applicant's experience and employment record for the past three years.
(H) The applicant's personal business history with specific reference to previous bankruptcies, previous applications submitted to the department for an Occupational License and if the applicant was the subject of a disciplinary action by the department while an Occupational Licensee.
(I) A statement disclosing whether or not the applicant was either a sole owner, partner, officer, director or stockholder of a firm that had either a civil or criminal judgment rendered against it.
(J) A statement disclosing whether the applicant, has ever been convicted, fined or placed on probation for any crime or offense either felony or misdemeanor, excluding traffic offenses.
(f) The property data for the business location including size, property owner's name and address, and if the property is rented or leased, the owner's or lessor's name and address.
(g) The name, address and telephone number of the bank where the applicant's business account, if any, is carried as well as the name under which the account is carried if not the same name as on the application, and the name of persons authorized to draw funds or issue checks from the account.
(h) If the application is for a manufacturer's or manufacturer's branch license, the names and addresses of all distributors and representatives acting for the applicant in this state and all dealers franchised by said applicant in this state and business addresses of such dealers. Thereafter, all manufacturers or manufacturer's branches shall inform the department within 30 days of any change in the list of representatives or dealers.
(i) If the application is for a distributor's or distributor's branch license, the name of the manufacturer for whom the distributor will act, the names and business addresses of all representatives acting for the applicant in this state and the names and business addresses of all dealers in this state franchised by the applicant. Thereafter, all distributors shall inform the department within 30 days of any change in the list of representatives and dealers.
(j) If the application is for a dealer's or lessor-retailer's license, the bond and certificate of appointment as required in Sections 11710 and 11710.1 of the Vehicle Code. Exception: The bond and certificate of appointment requirement is not necessary when the applicant only wishes to determine if the department would grant the applicant a license because of previous business or personal irregularities.
(k) Appropriate fees.



Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11501, 11504, 11601, 11602, 11701, 11704 and 11712, Vehicle Code.


s 252.30. Time Requirements for Any Change in License.
Every person holding a business license shall notify the department within 10 days prior to the effective date of any change in the ownership. Except a corporation modifying its corporate structure shall submit the appropriate forms necessary to record the change within 30 days of the effective date.



Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11704 and 11721(d), Vehicle Code.


s 252.40. Branch Location Application Requirements.
If an occupational licensee wishes to add a branch location, then the licensee shall submit to the department the following:
(a) The location of the branch location, including street, address, city, and zip code.
(b) If new vehicles are to be sold, then the name or names of the new vehicles for which the applicant is enfranchised to sell or exchange at that location and the name or names and address of the manufacturer or distributor enfranchising the applicant.
(1) All new motor vehicle dealers, except recreational vehicle dealers, shall submit the form required pursuant to Section 3062 of the Vehicle Code.
(c) The appropriate fees as required by the California Vehicle Code.



Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 3062, 9262, 9550, 11704 and 11712, Vehicle Code.


s 253.02. License Renewal Terms.
(a) The department shall issue a renewal license for a two-year term, pursuant to Vehicle Code Section 1665, to an All Terrain Vehicle Safety Organization, Dealer, Dismantler, Distributor, Driving School Owner, Lessor-Retailer, Manufacturer, Registration Service, Remanufacturer, Traffic Violator School Owner, or Transporter. The first two-year term occupational license shall be issued based on the following criteria:
(1) Licenses issued prior to January 1, 2006, with a date-in-business in an even year, will be issued a two-year renewal term when the license expires in 2006.
(2) Licenses issued prior to January 1, 2006, with a date-in-business in an odd year, will be issued a two-year renewal term when the license expires in 2007.
(3) Licenses issued on or after January 1, 2006, will be issued a two-year renewal term upon the first expiration date of the license.
(b) Any dealer required to provide evidence of successful completion of an educational program pursuant to Vehicle Code Section 11704.5(c)(1), in conjunction with the first two-year term license renewal, shall be exempt from subdivision (a)(1) thru (3).
(c) The fee for a license issued for a two-year term shall be twice the licensing fee established in statute for the specific type of license.
(d) Any authorizing indicia issued in conjunction with the renewal of a license shall be issued for the same term as the license. The fee for the indicia shall be twice the fee established in statute for the specific indicia.



Note: Authority cited: Sections 1651, 1665 and 11202(a)(2), Vehicle Code. Reference: Sections 11105, 11105.2, 11105.6, 11204, 11208, 11409, 11410, 11500, 11508, 11601, 11620, 11700 and 11704.5, Vehicle Code.


s 255.00. "Advertising" Defined.
(a) In the broad context of Vehicle Code Section 11713(a), any statement advertised refers to any statement, representation, act or announcement intentionally communicated to any member of the public by any means whatever, whether orally, in writing or otherwise.
(b) As used elsewhere in the Vehicle Code and in this article, the terms "advertising," "advertisement," or "advertise" refer to a statement, representation, act or announcement intentionally communicated to the public generally for the purpose of arousing a desire to buy or patronize. (continued)