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New Laws for 2008 - Occupational Licensing

Unless otherwise indicated, these new laws become effective on January 1, 2008.

Car Buyer’s Bill of Rights

Amend: Vehicle Code §11713.21 (AB 305 Chapter 219)

  • Allows dealers to increase the restocking fee under circumstances involving the purchase of a leased vehicle by the lessee.

Consumer Protection

Amend and Add: Vehicle Code §§11604, 11703, 11705, 4456.3, and Chapter 11 to Div. 5 (SB 729 chapter 437)

  • Creates the Consumer Motor Vehicle Recovery Corporation to manage a $5-million recovery fund to compensate consumers who have suffered monetary loss as the result of a vehicle dealership closure or insolvency.
  • A $1 fee will be collected by the DMV on each vehicle sold by a dealer or lessor/retailer. This fee cannot be passed on to the consumer.

Occupational Licensing

Amend: Vehicle code §11703.2 (SB 525 Chapter 93)

  • Expands the authority of the DMV to order restitution to victims who have suffered financial loss or damage by a vehicle dealer, manufacturer, distributor and transporter when the occupational license has been suspended or revoked.
  • Expands DMV’s authority to refuse to issue a license to include until restitution has been paid.

Recreational Vehicle Sales

Add: Vehicle Code §11713.22 (AB 1092 Chapter 406)

  • Establishes a requirement that a recreational vehicle manufacturer and a dealer authorized by that manufacturer to sell its line of recreational vehicles enter into a written franchise agreement, which is to include specified information.

Traffic Violator School Licensing

Amend: Vehicle Code §§11208, 11219.5 (AB 758 Chapter 396)

  • Requires DMV to submit a report to the Legislature, by July 1, 2008, containing a plan to consolidate all forms of traffic violation instruction programs under DMV’s licensing authority.
  • Increases the amount a traffic violator school may charge for a duplicate completion certificate and addresses a fee issue associated with class cancellations.