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Note: Authority cited: Section 1651, Vehicle Code. Reference: Division 5, Vehicle Code.
s 255.01. "Dealer's Cost" Defined.
"Dealer's cost," "factory invoice," or similar terms are defined as the actual cost to the dealer of any vehicle or part thereof delivered to the dealer's place of business. "Dealer's cost" or similar terms do not include expenses incurred by the dealer such as flooring, overhead, commissions, dealer advertising, or other costs.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11713 and 11713.1, Vehicle Code.
s 255.02. "Demonstrator" Defined.
A "demonstrator" is a vehicle specifically assigned by a dealer to be regularly used for the purpose of demonstrating qualities and characteristics common to vehicles of the same or similar model and type. A vehicle in a dealer's inventory which is only occasionally demonstrated to a prospective purchaser whose interest has focused on a particular vehicle is not a "demonstrator."
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 665 and 11713, Vehicle Code.
s 255.04. Applicability.
Unless otherwise provided, the provisions of Sections 255.00 through 262.09 are intended to govern the advertising of all entities subject to licensure by the Department of Motor Vehicles under Chapters 3.5 and 4 of Division 5 of the Vehicle Code.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Division 5, Vehicle Code.
s 260.00. Advertisements.
Any advertised statements, representations, or offers made in connection with the sale or attempted sale of any vehicle(s) shall be clearly set forth, and based on facts and shall be subject to these regulations and the Vehicle Code.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614 and 11713, Vehicle Code.
s 260.01. Vehicle Description.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 665, 11614, 11713, 11713.1 and 11713.5, Vehicle Code.
s 260.02. Vehicle History.
(a) Express advertisements of a vehicle's prior use or ownership history must be accurate.
(b) Former taxicabs, rental vehicles, publicly owned vehicles, insurance salvage vehicles and revived salvage vehicles shall be clearly identified as such if the previous status is known to the seller.
(c) If a vehicle is advertised and/or sold as a "demonstrator" and such a vehicle has been previously registered or sold to a retail purchaser, the selling dealer shall clearly disclose to the buyer the fact of such prior registration or sale before obtaining the buyer's signature on a purchase order or sales contract.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614 and 11713, Vehicle Code.
s 260.03. Vehicle Condition.
Statements of vehicle condition must accurately reflect the known condition, and pictures of vehicles must accurately depict their overall appearance.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614, 11615 and 11713, Vehicle Code.
s 260.04. Vehicle Availability.
(a) No dealer shall advertise a specific vehicle or a class of vehicles for sale, unless such vehicle(s) is in the dealer's possession, or is available to the dealer pursuant to a franchise agreement with the manufacturer or distributor of the vehicle(s). An advertisement of a vehicle not in a dealer's possession must so indicate, and must include a reasonable estimate of the date such vehicle will be available from the franchisor for delivery to a prospective purchaser.
(b) A specific vehicle advertised by a dealer or lessor-retailer shall be in condition to demonstrate and shall be willingly shown and sold at the advertised price and terms while such vehicle remains unsold or unleased, unless the advertisement states that the advertised price and terms are good only for a specific time and such time has elapsed. Advertised vehicles must be sold at or below the advertised price irrespective of whether or not the advertised price has been communicated to the purchaser.
(c) No manufacturer or distributor shall advertise vehicles for sale unless such vehicles are available to franchised dealers within the meaning of subsection (a) of Vehicle Code Section 11713.2, or, if not so available, the advertisement must include the date such vehicles will be available for purchase from retail dealers in the area in which the advertisement is disseminated.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614, 11713, 11713.1 and 11713.3, Vehicle Code.
s 260.05. Vehicle Equipment.
No specific vehicle shall be advertised as having special equipment or accessories unless such equipment or accessories are installed and operative at the time of the advertisement.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11615 and 11713, Vehicle Code.
s 260.07. Returned Vehicles.
If a dealer or lessor-retailer advertises that a vehicle may be returned if the purchaser is not satisfied, the advertisement must clearly state the terms and conditions of the offer. In addition, the dealer or lessor-retailer must furnish the buyer with a written copy of the terms and conditions of return before obtaining the purchaser's signature to a purchase order or sales contract.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11613, 11614, 11705 and 11713, Vehicle Code.
s 262.00. Dealer Price.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614, 11713 and 11713.1, Vehicle Code.
s 262.01. Manufacturer's or Distributor's Price.
If a manufacturer or distributor advertises the price of a vehicle or class of vehicles, the price quoted shall be the manufacturer's suggested base price.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614 and 11713, Vehicle Code; and 15 U.S.C.S. 1231, et. seq.
s 262.03. Dealer Added Charges.
A dealer may not identify a separate charge or charges for services performed on vehicles prior to delivery to the extent the dealer is or will be reimbursed for such expenditures by another party. If a dealer does identify a separate charge or charges for delivery and preparation services performed over and above those delivery and preparation obligations specified by the franchiser and for which the dealer is to be reimbursed by the franchiser, then the services performed and the charges therefore shall be separately itemized. Such added charges must be included in the advertised price.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 11713.1, Vehicle Code.
s 262.05. Financing, Down Payment, and Trade-In Allowance.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614, 11705 and 11713, Vehicle Code; and Section 2981, et. seq., Civil Code.
s 262.06. Down Payment.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614 and 11713, Vehicle Code.
s 262.07. Trade-In Allowances.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 11713, Vehicle Code.
s 262.08. Identity of Dealer or Lessor-Retailer.
Advertisements by dealers or lessor-retailers shall identify the dealer or lessor-retailer either by the name under which the licensee does business or by such other name as will serve to readily identify the dealer or lessor-retailer both to the public and the department.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614 and 11713, Vehicle Code.
s 262.09. Qualifying Statements.
Qualifying statements used in connection with vehicle advertisements, including the qualifying statements required by this article, shall be large enough and displayed for a sufficient period of time to enable the average reader or viewer to comprehend such statements.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11614 and 11713, Vehicle Code.
s 268.04. Dealer Examination Requirements.
(a) All applicants for a vehicle dealer license subject to Vehicle Code Section 11704.5 shall be required to pass a written dealer examination provided and administered by the department with a minimum score of 70%.
(1) When a firm, corporation, association, limited liability company, or a partnership submits a dealer license application which is subject to Vehicle Code Section 11704.5, at least one person who is part of the ownership structure and who is required to submit a Personal History Statement, and who will have primary responsibility for managing the day to day dealership business which is reliant on the subject matter knowledge contained in the dealer examination shall be required to pass the dealer examination as described by Vehicle Code Section 11704.5(a) and this article.
(2) At least one person who has passed the dealer examination required by Vehicle Code Section 11704.5(a) and Section 268.04(a)(1) of these regulations must continuously be part of the ownership structure of all firms, corporations, associations, limited liability companies, or partnerships which are issued vehicle dealer licenses subject to Vehicle Code Section 11704.5.
(b) The dealer examination shall cover the subjects specified in Vehicle Code Section 11704.5(a), and the following subjects:
(1) Warranties
(A) Lemon Law
(B) Service Agreements
(2) Federal Buyers Guide Requirements
(3) Stolen Vehicle Prevention
(A) Indicia Verification
(4) Vehicle History Disclosure Requirements
(5) Basic Dealer Licensing Requirements
(A) Forms
(B) Fees
(C) Bond Requirements
(D) License and Sign Posting Requirements
(E) License Renewal Requirements
(F) Automatic Cancellations per Section 11721, Vehicle Code
(6) DMV Enforcement Actions
(A) Administrative
(B) Criminal
(C) Civil
(c) All applicants shall be required to present a current California driver license (DL) or California identification card (ID) issued by the department as personal identification prior to being allowed to take the dealer examination.
(1) If the personal identifying information on the California DL or ID presented by the applicant does not match the personal identifying information contained on the applicant's dealer educational program completion certificate, the applicant will not be allowed to take the dealer examination.
(d) Any applicant who fails the examination administered by the department will not be eligible to retake the examination for at least one week.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 236, 386, 470 and 11704.5, Vehicle Code.
s 268.06. Dealer Educational Program Requirements.
(a) All applicants for a vehicle dealer license subject to Vehicle Code Section 11704.5 shall provide evidence to the department of having successfully completed an educational program as described by Vehicle Code Section 11704.5(b) and this article.
(1) When a firm, corporation, association, limited liability company, or a partnership submits a dealer license application which is subject to Vehicle Code Section 11704.5, at least one person who is part of the ownership structure and who is required to submit a Personal History Statement, and who will have primary responsibility for managing the day to day dealership business which is reliant on the subject matter knowledge contained in the dealer examination shall be required to provide evidence to the department of having successfully completed an educational program as described by Vehicle Code Section 11704.5(b) and this article.
(b) The educational program completed by dealer license applicants subject to Vehicle Code Section 11704.5 must be a program which is approved and certified by the department.
(c) The educational program completed by dealer license applicants subject to Vehicle Code Section 11704.5 shall adequately cover the subject areas specified in Vehicle Code Section 11704.5(a) and the additional subjects specified in section 268.04(b) of this article.
(d) The lesson plans for all educational programs provided under this section shall be approved by the department as complying with the program requirements described in this article and in Vehicle Code Section 11704.5. All lesson plans approved by the department shall also substantially comply with the department's Lesson Plan Guideline for Used Vehicle Dealer Education Programs, OL 2000 (New. 8/97), which the department hereby incorporates by reference.
(e) All dealer educational program providers shall submit their fully developed lesson plans to the department for approval prior to utilizing them in a program.
(1) All lesson plans submitted for approval shall include a complete table of contents, and the pages of the plan shall be consecutively numbered.
(2) All lesson plans submitted for approval shall include samples of all workbooks, videos, tests, final exams, and other teaching aids used in the program.
(3) All lesson plans submitted for approval shall include a time schedule that specifies the time allotted to cover each subject area, the time allotted for break periods, and the time allotted for administrative activities.
(f) All educational program providers shall be responsible for revising their approved lesson plans as necessary to ensure that all required subject areas presented reflect substantial ongoing changes in relevant statutes, regulations or other requirements.
(1) Any substantial change(s) to the lesson plan of an approved program must be authorized in writing by the department prior to presenting them in an approved program.
(g) All proposed program lesson plans and proposed changes to approved lesson plans submitted by a program provider to the department for approval shall receive a letter of approval or disapproval within 30 working days of receipt by the department of a proposed lesson plan or a proposed lesson plan change.
(1) The department shall provide a written receipt within 10 working days of receiving any proposed lesson plan and proposed change to an approved lesson plan submitted by a program provider for the department's approval.
(A) The receipt provided by the department shall inform the program provider that the proposed lesson plan or lesson plan change is complete and accepted for consideration or is deficient and specify what additional data or materials are necessary.
(2) All programs approved by the department shall receive a written certification containing a unique certification number issued by the department.
(3) An educational program approved by the department shall remain certified only so long as the program continues to meet all program requirements as described in this article and in Vehicle Code Section 11704.5.
(4) Whenever a program fails to meet all program requirements, the department shall notify the program provider in writing of all program deficiencies and shall include specific instructions on how the program can correct the identified deficiencies.
(A) The department will allow the program provider 20 working days from the date of the deficiency notice to implement the required changes in order to correct the identified program deficiencies.
(5) In the event a program provider fails to implement the required program corrections for all identified program deficiencies within the specified period, the department will decertify the program in writing which will specify the effective date of the decertification.
(6) Any program completion certificates issued for any period of instruction during which the issuing program was not certified by the department will not be accepted as evidence of program completion.
(h) All educational programs provided under this section shall contain a comprehensive final examination which tests for knowledge of all subjects which are required to be covered in the program.
(1) A successful passing score of 70% on the final program examination is required of all program participants prior to the issuance of a completion certificate by the program provider.
(i) All persons who wish to be admitted as students to a certified dealer educational program are required to present a current California DL or ID as personal identification.
(1) All certified program providers shall refuse to provide a program completion certificate to any person who has not presented a current California DL or ID which verifies his or her personal identity.
(j) Records of all classes given by a certified program provider shall be compiled and retained by the provider for not less than one (1) year and one (1) month from completion of the class.
(1) Records shall include complete student rosters, course dates and times, and all final examinations and scores.
(2) Records shall be made available to department inspectors and investigators for official purposes relating to inquiries of program sufficiency or program fraud.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 470 and 11704.5, Vehicle Code.
s 268.08. Evidence of Dealer Educational Program Completion.
(a) Evidence of program completion shall consist of a completion certificate provided by a certified program provider which shall include the following:
(1) The start and completion date(s) the identified person attended the program.
(2) The total hours of instruction the identified person received in the program.
(3) Full printed name, date of birth, and the number of the California DL or ID of the person who completed the program.
(4) Program provider identifying information including:
(A) Printed name, telephone number, and business address of program provider.
(B) Course curriculum certification number as provided by the department.
(C) Printed name and signature of program instructor or provider.
(D) A unique sequential certificate identifier which includes alpha/numeric symbols.
(5) A statement certifying that the person named on the completion certificate has successfully completed the program.
(b) Completion certificates issued for completion of approved dealer education programs will be valid for submission with original dealer license applications for a period of only one year from the date of program completion.
(c) All dealer educational program providers shall submit a sample of their program completion certificates to the department for approval prior to utilizing them in a program.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 11704.5, Vehicle Code.
s 268.10. Dealer Surety Bond Requirements.
(a) Every applicant for issuance or renewal of a dealer license, other than a dealer who deals exclusively with motorcycles and/or all-terrain vehicles and a wholesale dealer selling less than 25 vehicles a year, shall submit the bond required by Vehicle Code section 11710 on a Dealer Surety Bond, form OL 25 (REV. 11/2004), which is hereby incorporated by reference. The bond shall be subject to chapter 2 (commencing with Section 995.010), title 14, of part 2 of the Code of Civil Procedure.
(b) Every applicant for issuance or renewal of a license for a dealer who deals exclusively in motorcycles and/or all-terrain vehicles shall submit the bond required in Section 268.12 of Title 13, California Code of Regulations.
(c) Every applicant for issuance or renewal of a license for a dealer selling less than 25 vehicles a year on a wholesale basis only shall submit the bond required in Section 268.12 of Title 13, California Code of Regulations.
(d) The true, full name of the dealer, and any doing business as (DBA) names under which the licensed activity is conducted, shall be entered on the bond.
(e) The appointment of director as the agent for service of process required by Vehicle Code section 11710(d) shall be in the form required under subdivision (c) of Section 330.08 of Title 13, California Code of Regulations.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 995.010, Code of Civil Procedure; and Sections 11710 and 11710.1, Vehicle Code.
s 268.12. Surety Bond Requirements for Motorcycle Dealers, Motorcycle Lessor-Retailers, All-Terrain Vehicle Dealers and Wholesale Only Dealers Who Sell Less Than 25 Vehicles Per Year.
(a) The bond required by Vehicle Code sections 11612 and 11710 for a dealer who will deal exclusively in motorcycles or all-terrain vehicles or who sells wholesale less than 25 vehicles a year shall be executed on a Surety Bond of Motorcycle Dealer, Motorcycle Lessor-Retailer, All-Terrain Vehicle Dealer, or Wholesale Only Dealer (Less Than 25 Vehicles Per Year), form OL 25B (REV. 12/2004), which is hereby incorporated by reference. The bond shall be subject to chapter 2 (commencing with Section 995.010), title 14, of part 2 of the Code of Civil Procedure.
(1) For the purpose of determining whether a dealer sells less than 25 vehicles a year, a year shall be defined as the period beginning on the initial date of licensure and ending on the day before the renewal date.
(2) The name of the Principal on the surety bond shall include any and all "Doing Business As" (DBA) names used by the Principal to conduct business as authorized under the occupational license.
(3) The appointment of director as the agent for service of process required by Vehicle Code section 11710(d) shall be in the form required under subdivision (c) of Section 330.08 of Title 13, California Code of Regulations.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 995.010, Code of Civil Procedure; and Sections 11612, 11710 and 11710.1, Vehicle Code.
s 270.00. Place of Business.
Before the department can issue any temporary permit or license or allow such license to remain in force, the applicant's principal place of business and each branch location must conform to Vehicle Code Sections 320 and 11709.
The office of the principal place of business and each branch location of the dealership must be established to the extent that its construction is not temporary, transitory or mobile in nature, except that a trailer coach office is acceptable providing it is not a part of the dealer's vehicle inventory not being offered for or subject to sale while being used as an office of the dealership, and otherwise meets the requirements of Vehicle Code Section 320.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11709 and 11713, Vehicle Code.
s 270.02. Dealer Branch Location Definition.
Dealer Branch is any location, other than the principal place of business of the dealer, maintained for the sale or exchange of vehicles. A branch location must comply with the requirements of Section 320 and Section 11709 of the Vehicle Code.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320 and 11709, Vehicle Code.
s 270.04. Change of Location.
Any dealer who changes the site of either the principal or a branch location must comply with all provisions of Vehicle Code Sections 320 and 11709, before the application for change of location may be accepted.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11709 and 11712, Vehicle Code.
s 270.06. Signs or Devices.
The signs or devices identifying the dealership at each business location as required pursuant to Vehicle Code Section 11709, shall be of a permanent nature, erected on the exterior of the office or on the display area, and be constructed or painted and maintained so as to withstand reasonable climatic effects and be readable as provided for in Section 11709. A temporary sign or device may suffice when a permanent sign is on order. Evidence of such order shall be submitted to the Department prior to issuance of a temporary permit or license.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 11709, Vehicle Code.
s 270.08. Display Area.
(a) The display area of the principal place of business of each branch location and additional display areas as permitted by this section shall be of sufficient size to physically accommodate vehicles of a type for which the dealership is licensed to sell. The display area must be clearly for the exclusive use of the dealer for display purposes only. Additional display areas are permitted within a radius of 1,000 feet from the principal place of business and any licensed branch location without being subject to separate licensing. However, such display areas must also meet the signing requirement as identified in Vehicle Code Section 11709(a).
(b) The provisions of Vehicle Code Section 11709(b), which permits a dealer to display vehicles at a fair, exposition, or similar exhibit without securing a branch license extends to public shopping areas, public shopping centers, autoramas and other similar locations or events open to the public and intended to merely bring the dealer's identity and product to the public's attention, provided that:
(1) No sales are offered, attempted, solicited, negotiated or otherwise transacted from such locations or at such public event, including the acceptance of cash deposits, trade-in vehicles or any other considerations from persons for the purpose of inducing or binding a sale.
(2) Such locations are available to all dealers licensed in this state without discrimination as to type of manufacture, make, or year of vehicle displayed.
(3) Every dealer participating at such locations or events shall post a sign on the vehicle or vehicles or in close proximity thereto, printed in letters of not less than three (3) inches in height, which shall show the dealer's name, location and address of his established place of business and the following statement: "No sales permitted, or deposits accepted at this location."
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11705 and 11709, Vehicle Code.
s 272.00. Business Records.
(a) Pertinent records of a licensed dealer which must be open to inspection pursuant to Vehicle Code Section 320 are those records maintained in the regular course of business insofar as those records are directly concerned with the purchase, sale, rental or lease of a vehicle.
(b) Unless otherwise specified by statute, all business records relating to vehicle transactions shall be retained by the dealership for a period of not less than three years.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 320, Vehicle Code.
s 272.02. Location of Business Records.
A vehicle dealer may, at his option, maintain the business records of the dealership at the office of the principal place of business; or if the dealer has a branch location(s), records peculiar to that branch may be maintained either at such branch location or at the principal place of business. Upon approval of the department, the records may be maintained at a business location other than as required in this section, provided a written instrument is filed with the department describing such other location and granting the department authorization to inspect the records thereat.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 320, Vehicle Code.
s 272.04. Disclosure to Low Speed Vehicle Buyer.
(a) A "low speed vehicle" is defined as having a maximum speed of not more than 25 miles per hour which complies with Federal Motor Vehicle Safety Standards.
(b) A vehicle dealer, selling a low speed vehicle, shall provide a disclosure to be signed by the buyer at the time of purchase. The disclosure will include a statement that the vehicle:
(1) Has a maximum speed of 25 miles per hour.
(2) May be a hazard on the roadways if it impedes traffic.
(3) May subject the driver to citations for impeding traffic.
(c) The vehicle dealer shall give a copy of the signed disclosure to the buyer and keep the original with the business records of vehicle transactions.
(d) Prior to the sale of a low speed vehicle, the dealer or manufacturer shall affix a permanent decal to the underside of the roof near the windshield on the driver side.
(1) The decal shall be approximately 3 inches high by 5 inches wide.
(2) The decal shall contain the disclosure statement information specified in (b).
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 1809, 11713 and 21252, Vehicle Code.
s 280.12. Lessor-Retailer Surety Bond Requirements.
(a) Every applicant for issuance or renewal of a lessor-retailer license other than a lessor-retailer who deals exclusively with motorcycles shall submit the bond required by Vehicle Code section 11612 on a Lessor-Retailer Surety Bond, form OL 25C (REV. 11/2004), which is hereby incorporated by reference. The bond shall be subject to chapter 2 (commencing with Section 995.010), title 14, of part 2 of the Code of Civil Procedure.
(b) Every applicant for issuance or renewal of a license as a lessor-retailer who deals exclusively with motorcycles shall submit the surety bond required in Section 268.12 of Title 13, California Code of Regulations.
(c) The true, full name of the lessor-retailer, and any doing business as (DBA) names under which the licensed activity is conducted, shall be entered on the bond.
(d) The appointment of director as the agent for service of process required by Vehicle Code section 11710(d) shall be in the form required under subdivision (c) of Section 330.08 of Title 13, California Code of Regulations.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 995.010, Code of Civil Procedure; and Sections 11612 and 11710, Vehicle Code.
s 285.06. Remanufacturer Surety Bond Requirements.
(a) Every applicant for issuance or renewal of a remanufacturer license shall submit the bond required by Vehicle Code section 11710 on a Remanufacturer Surety Bond, form OL 25A (REV. 11/2004), which is hereby incorporated by reference. The bond shall be subject to chapter 2 (commencing with Section 995.010), title 14, of part 2 of the Code of Civil Procedure.
(b) The true, full name of the remanufacturer, and any doing business as (DBA) names under which the licensed activity is conducted, shall be entered on the bond.
(c) The appointment of director as the agent for service of process required by Vehicle Code section 11710(d) shall be in the form required under subdivision (c) of Section 330.08 of Title 13, California Code of Regulations.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 995.010, Code of Civil Procedure; and Section 11710, Vehicle Code.
s 290.00. Place of Business.
The applicant for, or holder of a vehicle manufacturer's license shall maintain a suitable site sufficient in size and furnishings to effect the manufacture, assembly, reconstruction, or reconfiguration in final form for subsequent delivery to the distributorships or to licensed vehicle dealers in this state, vehicles subject to registration by the department.
(a) If no manufacturing site is located in this state, the department may require such supporting documentary proof as it deems necessary to determine the applicant's status as an actual manufacturer pursuant to Vehicle Code Section 11701, and the applicant's compliance with Vehicle Code Section 320.
(b) If the mailing address of the licensee is not at the actual manufacturing site, such mailing address shall be reflected in the application, and thereafter remain current with the department.
(c) It is not necessary for a vehicle manufacturer to obtain licenses for branch manufacturing sites located outside of this state, provided the principal site is licensed with the department.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11701 and 11713, Vehicle Code.
s 290.02. Pertinent Books and Records.
Pertinent books and records of a vehicle manufacturer as set forth in Vehicle Code Section 320 include, but are not limited to, invoices, certificates of origin, manufacturer's suggested retail price lists, vehicle identification number and motor number locations and coding data, and any other record which relates to the identification and history of vehicles subject to registration in this state. The department may require that any pertinent record printed in any language other than the English language be accompanied by a version translated into the English language prior to acceptance by the department as a genuine record of the manufacturer.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320 and 11701, Vehicle Code.
s 292.06. Vehicle Verifier Surety Bond Requirements.
(a) Every applicant for issuance or renewal of a vehicle verifier permit shall submit the bond required by Vehicle Code section 11301 on a Vehicle Verifier Surety Bond, form OL 26 (REV. 11/2004), which is hereby incorporated by reference. The bond shall be subject to chapter 2 (commencing with Section 995.010), title 14, of part 2 of the Code of Civil Procedure.
(b) The bond shall be conditioned that if the vehicle verifier not cause any loss by the public or the State arising out of the operation under the vehicle verifier permit, then this obligation is to be void; otherwise it is to remain in full force and effect.
(c) The true, full name of the vehicle verifier, and any doing business as (DBA) names under which the licensed activity is conducted, shall be entered on the bond.
Note: Authority cited: Sections 1651 and 11308, Vehicle Code. Reference: Section 995.010, Code of Civil Procedure; and Section 11301, Vehicle Code.
s 295.00. Place of Business.
The principal place of business for an applicant for, or the holder of, a vehicle transporter's license shall be the location of record with the department.
(a) If the mailing address of the licensee is not at the actual principal place of business, such mailing address shall be reflected in the application along with the address of the principal place of business and thereafter remain current with the department.
(b) It is not necessary for a vehicle transporter to obtain licenses for branch business locations outside of this state, provided the principal place of business is licensed with the department.
(c) If the principal place of business is not located in this state, the department may require such supporting documentary proof as it deems necessary to determine the applicant's status as an actual transporter pursuant to Vehicle Code Section 320.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11701 and 11713, Vehicle Code.
s 300.00. Display of Numbers.
Note: Authority cited: Sections 1651 and 9853.2, Vehicle Code. Reference: Sections 9850, 9853.2 and 9857, Vehicle Code; and CFR, Title 33, Sections 173.19, 173.27, 174.13 and 174.14.
s 300.01. Registration Stickers.
Note: Authority cited: Sections 1651 and 9853.4, Vehicle Code. Reference: Section 9853.4, Vehicle Code; and CFR, Title 33, Section 174.15.
s 300.02. Proof of Ownership.
Note: Authority cited: Sections 1651 and 9852, Vehicle Code. Reference: Section 9852, Vehicle Code; and CFR, Title 33, Section 174.31.
s 300.03. Department Agents' Authorization.
Note: Authority cited: Sections 1651 and 9858, Vehicle Code. Reference: Sections 9858 and 9859, Vehicle Code.
s 300.04. Definition of a Livery Boat.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9840 and 9850, Vehicle Code; and CFR, Title 33, Section 174.19.
s 300.05. Definition of a Vessel Carrying Passengers for Hire.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9840 and 9850, Vehicle Code; and CFR, Title 33, Section 174.19.
s 300.06. Definition of a Boat Manufacturer.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9840, Vehicle Code.
s 300.07. Definition of a Boat Dealer.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9856 and 9912, Vehicle Code.
s 300.08. Certificates of Number for Dealer, Manufacturer, Livery Vessel and Vessel Carrying Passengers for Hire.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9850, 9853, 9853.1-9853.3, Vehicle Code; CFR, Title 33, Sections 173.27 and 174.19; and CFR, Title 46, Section 67.01-11.
s 300.09. Terms and Conditions for Vessel Registration and Numbering.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9852, 9853.1, 9853.4, 9855 and 9858, Vehicle Code; and CFR, Title 33, Section 174.31.
s 300.10. Contents of Applications for Certificate of Ownership and Certificate of Number.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9852 and 9853, Vehicle Code; and CFR, Title 33, Section 174.17.
s 300.11. Contents of Certificate of Number.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9853 and 9853.1, Vehicle Code; and CFR, Title 33, Section 174.19.
s 300.12. Validity of Certificate of Number.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9853.1, 9855, 9858, 9864, 9874 and 9915, Vehicle Code; and CFR, Title 33, Section 173.77.
s 300.13. Removal of Stickers.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9853.4 and 9874, Vehicle Code; and CFR, Title 33, Section 173.33.
s 300.14. Temporary Certificate of Number.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9858; and CFR, Title 33, Sections 173.75 and 174.29.
s 300.15. Hull Identification Numbers.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9871 and 9871.5, Vehicle Code; and CFR, Title 33, Sections 181.23, 181.25, 181.27 and 181.29.
s 300.16. Fee-Exempt Boats.
Note: Authority cited: Section 9851, Vehicle Code. Reference: Section 9851, Vehicle Code.
s 300.17. Recreational-Type Public Vessels.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9851, Vehicle Code; and CFR, Title 33, Section 173.11.
s 300.18. Fee-Exempt Annual Renewal.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9850, Vehicle Code.
s 300.19. Racing Vessels.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9854 and 9873, Vehicle Code.
s 300.20. Livery Vessels.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9853.3, Vehicle Code; and CFR, Title 33, Section 173.21.
s 300.21. Notification to the Department.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9864, 9865 and 9911, Vehicle Code; and CFR, Title 33, Section 173.29.
s 300.22. Surrender of Certificate of Number.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 9864 and 9900, Vehicle Code; and CFR, Title 33, Section 173.31.
s 301.00. Non-Motorized Surfboard-Like Vessels Exempted Under Vehicle Code Section 9873(e).
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9873, Vehicle Code.
s 302.00. Proof Documents Re Lien Sale Vessels.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9915, Vehicle Code.
s 304.00. Place of Business.
Before the department can issue any temporary permit or license or allow such license to remain in force, the applicant's principal place of business and each branch location must conform to Vehicle Code Sections 320 and 11513.
(a) The office of the principal place of business and each branch location of the firm must be established to the extent that its construction is not temporary, transitory or mobile in nature, except that a trailer coach office is acceptable providing it is not a part of the dismantling inventory, and otherwise meets the requirements of Vehicle Code Section 320.
(b) Office in Private Residence. In considering any application for a vehicle dismantler's license wherein the established place of business is a part of any single or multiple-unit dwelling house, the department may require additional proof of the applicant's status as an actual dismantler pursuant to Vehicle Code Section 11514 in the form of confirmation from the local zoning authority in the city, county, or city and county, that the property is properly zoned for the conduct of such business.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11513 and 11514, Vehicle Code.
s 304.02. Dismantler Branch Location Definition.
Dismantler Branch is any location, other than the principal place of business of the dismantler, maintained for the purpose(s) identified in Section 220 of the Vehicle Code.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 220 and 320, Vehicle Code.
s 304.04. Signs and Devices.
The signs or devices identifying the firm at each business location as required pursuant to Vehicle Code Section 11514 shall be of a permanent nature, erected on the exterior of the office or the dismantling area, and constructed or painted so as to withstand reasonable climatic effects. A temporary sign or device may suffice during the period of time required to obtain a permanent sign or device, providing the order for construction, purchase or painting has in fact been placed at time of submitting the application to the department.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 11514, Vehicle Code.
s 304.06. Dismantling Area.
The dismantling area shall be in such proximity to the office of the dismantler to avoid confusion and uncertainty as to its relationship to the business.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320, 11501 and 11509, Vehicle Code.
s 304.08. Dismantler Report Forms.
Books and forms furnished licensed vehicle dismantlers by the department pursuant to Vehicle Code Section 11505 shall be known as dismantler's books f notice of acquisition and report of vehicle to be dismantled, and shall be submitted pursuant to the provisions of Vehicle Code Section 11520.
(a) Dismantler's notice of acquisition shall be prepared in quadruplicate for disposition as follows:
(1) The original shall be submitted to the Department of Motor Vehicles, Division of Registration, P.O. Box 1319, Sacramento, CA 95806.
(2) The first carbon copy shall be submitted to the Department of Justice, Bureau of Identification, P.O. Box 13417, Sacramento, CA 95813.
(3) The second carbon copy shall be submitted to the appropriate local law enforcement agency, if required.
(4) The third carbon copy shall remain with the firm's business records.
(b) Dismantler's report of vehicle to be dismantled shall be prepared in triplicate for disposition as follows:
(1) The original and triplicate copy shall be submitted to the department, either at a local field office or to Department of Motor Vehicles, Division of Registration, P.O. Box 1319, Sacramento, CA 95806.
(2) The quadruplicate copy shall remain with the firm's business records.
(3) The duplicate copy is blank, and requires no disposition.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11505 and 11520, Vehicle Code.
s 304.10. Acquisition of Cleared Vehicles.
It shall not be necessary for a licensed vehicle dismantler to submit a notice of acquisition for, or to clear, any vehicle acquired from another person if such person has already notified, and cleared the vehicle with the department for dismantling provided a bill of sale has been executed to the dismantler which properly identifies such vehicle and evidence of clearance by the department such as a dismantling report number, temporary receipt number, or other proof of previous compliance with Vehicle Code Section 11520.
Any person other than a licensed dismantler who is engaged in the business of acquiring and disposing of vehicles in conjunction with metal scrap processing, shredding, salvage or other large-scale disposal operations which include vehicles acquired from licensed vehicle dismantler sources that have already cleared such vehicles for dismantling in compliance with Vehicle Code Section 11520 need not repeat clearance process if he is in possession of evidence attesting to proof of compliance pursuant to Vehicle Code Section 221(a)(4).
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 221 and 11520, Vehicle Code.
s 304.12. Business Records.
Business records of a vehicle dismantler, which the department may inspect and copy pursuant to its authority under Vehicle Code Section 320, include but are not limited to departmental books and forms, inventory journals, documents prepared by a public entity for the ordering of towing, storing or disposal of vehicles, bills of sale, and all other documents normally executed or maintained in transactions relating to the acquisition and disposing of vehicles and parts or scrap therefrom in the conduct of the vehicle dismantling business.
(a) Business records shall be maintained for any part, component or system which has been temporarily removed from any vehicle acquired for dismantling and prior to clearance for dismantling, provided such part, component or system was removed for the sole purpose of safekeeping and the record is attached thereto which properly identifies the vehicle from which such part, component or system has been removed.
(b) Unless otherwise specified by statute, all business records relating to vehicle transactions shall be retained by the firm for a period of not less than three years.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 320 and 11520, Vehicle Code.
s 304.14. Location of Business Records.
A vehicle dismantler may, at his option, maintain the business records of the firm at the office of the principal place of business, or if the dismantler has a branch location(s), records peculiar to that branch may be maintained either at such branch location or at the principal place of business.
(a) Upon approval of the department, the records may be maintained at a business location other than as required in this section, provided a written instrument is filed with the department describing such other location and granting authorization to inspect the records thereat.
Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 320, Vehicle Code.
s 310.00. General Procedures When Fees Not Paid.
Note: Authority cited for Article 3.2: Section 1651, Vehicle Code. Reference: Section 9801, Vehicle Code.
s 310.01. Procedures When Fees Paid by Check Which Is Dishonored.
s 310.02. Procedures for Jeopardy Seizure.
s 310.03. Notice After Jeopardy Seizure.
s 310.04. Conduct of the Hearing.
Note: Authority cited: Section 1651, Vehicle Code; and Sections 11180, 11181 and 11182, Government Code. Reference: Section 9801, Vehicle Code.
s 314.00. Monetary Penalties.
(a) Dealer, Distributor, Manufacturer, Transporter, Salesperson. Payment of the following monetary penalties may be required of an occupational licensee pursuant to an agreement between the Director and the licensee entered into under the authority of Vehicle Code Section 11707:
(1) A minimum of $15 and a maximum of $300 for each violation of the following provisions of Vehicle Code Sections: 3064(a), 3065, 4000, 4161(a), 4456(a), 5202, 5204(a), 5350.3, 5604, 5901, 8802, 11705(a)(6), 11705(a)(7), 11705(a)(8), 11705(a)(11), 11705(a)(12), 11709, 11712.5, 11713(c), 11713(k), 11713.1(a), 11713.1(b), 11713.1(c), 11713.1(d), 11715(f), 38200(a); any other provision not set forth in this section which establishes an administrative cause of action against an occupational license.
(2) A minimum of $50 and a maximum of $750 for each violation of the following provisions of Vehicle Code Sections: 20, 8803, 11705(a)(1), 11705(a)(2), 11705(a)(3), 11705(a)(10), 11705(a)(15), 11705.4, 11712, 11713(a), 11713(b), 11713(e), 11713(f), 11713(g), 11713(h), 11713(i), 11713(j), 11713(l), 11713.1(e), 11713.2, 11713.3, 11713.4, 11713.5(a), 11713.5(b), 11713.5(c), 11725, 11800, 11812, 11819, 11900, 24007(a).
(3) A minimum of $100 and a maximum of $1000 for each violation of the following provisions of Vehicle Code Sections: 4463, 5753, 11705(a)(4), 11705(a)(5), 11705(a)(9), 11705(a)(13), 11705(a)(14), 11705(a)(15), 11713(d), 11713(m), 11713(n), 11714(c).
(b) Dismantlers. Payment of the following monetary penalties may be required of a dismantler licensee pursuant to an agreement between the director and the licensee entered into under the authority of Vehicle Code Section 11509.1.
(1) A minimum of $15 and a maximum of $50 for each violation of the following provisions of Vehicle Code Sections: 4000, 4161(a), 5202, 5204, 5900(c), 8802, 11509(a)(3), 11509(a)(4), 11509(a)(7), 11509(a)(10), 11514(a), 11516, 11519, 11520(a); any other provision not set forth in this section which establishes an administrative cause of action against a dismantler license.
(2) A minimum of $25 and a maximum of $100 for each violation of the following provisions of Vehicle Code Sections: 20, 8803, 11509(a)(1), 11509(a)(2), 11509(a)(6), 11513, 11725.
(3) A minimum of $50 and a maximum of $150 for each violation of the following provisions of Vehicle Code Sections: 11509(a)(5), 11509(a)(11), 11509(a)(12).
Note: Authority cited: Sections 1651, 11509.1 and 11707, Vehicle Code. Reference Sections 11509.1 and 11707, Vehicle Code. (continued)