Used vehicle sales: salespersons' licenses.

Existing law requires every manufacturer, distributor, transporter, and dealer of motor vehicles to obtain a license or temporary permit from the Department of Motor Vehicles before engaging in business. Under existing law, each person who applies for a dealer's license for the purpose of transacting sales of used vehicles is required to successfully complete a written examination before a license may be issued. Existing law also requires each applicant to successfully complete a preliminary educational program of not less than 4 hours before taking the examination. Existing law further requires a licenseholder to complete an educational program of not less than 4 hours every 2 years after issuance of the license. Existing law also requires every vehicle salesperson to obtain a license or temporary permit before engaging in vehicle sales, and provides that the license is valid for 3 years from the date of issuance. This bill would require an applicant for a vehicle salesperson's license or renewal of a salesperson's license who is employed by a dealer that sells only used vehicles for retail sale to complete the above-described educational programs applicable to vehicle dealers, unless the dealer owns a minimum of 10 branches of the business within the state and provides a minimum of 10 hours of educational training per year to its salespersons. The bill would require the dealer to maintain a copy of the salesperson's evidence of completion of the educational requirements at the location where the salesperson is employed, subject to inspection by the department.