Article 3. Representatives of California Vehicle Code >> Division 5. >> Chapter 4. >> Article 3.
It shall be unlawful for any person to act as a
representative on or after July 1, 1974, without having first
procured a license or temporary permit issued by the department or
when such license or temporary permit has been canceled, suspended,
revoked, or invalidated or has expired.
The department shall prescribe and provide forms to be used
for application for licenses to be issued under the terms and
provisions of this chapter and require of such applicants, as a
condition precedent to issuance of such license, such information
touching on and concerning the applicant's character, honesty,
integrity and reputation as it may consider necessary. Every
application for a representative's license shall contain, in addition
to such information as the department may require, a statement of
the following facts:
(a) Name and address of the applicant.
(b) Whether the applicant has ever had a court judgment rendered
for which he has been liable as a result of his activity in
connection with an occupation licensed under this chapter and whether
such judgment remains unpaid or unsatisfied.
(c) Whether the applicant ever had a license, issued under the
authority of this chapter, revoked, suspended, or subjected to other
disciplinary action and whether the applicant was ever a partner in a
partnership or an officer, director, or stockholder in a corporation
licensed under the authority of this chapter, the license of which
was revoked, suspended, or subjected to other disciplinary action.
(d) Name, address, and license number of the manufacturer,
manufacturer branch, distributor, or distributor branch employing the
(a) The department shall issue a representative's license
when it finds and determines that the applicant has furnished the
required information, and that the applicant intends in good faith to
act as a representative and has paid the fees required by Sections
9262 and 11723.
(b) The department may refuse to issue, or may suspend or revoke,
a license for any of the following reasons:
(1) The information in the application is incorrect.
(2) The applicant or licensee has been convicted of a crime or
committed any act or engaged in any conduct involving moral turpitude
which is substantially related to the qualifications, functions, or
duties of the licensed activity. A conviction after a plea of nolo
contendere is a conviction within the meaning of this section.
(3) The applicant or licensee has outstanding an unpaid final
court judgment rendered in connection with an activity licensed under
(4) The applicant or licensee was previously the holder of, or was
a business representative of a business which was the holder of, a
license and certificate issued under this chapter which were revoked
for cause and not reissued by the department or which were suspended
for cause and the terms of suspension have not been fulfilled.
(5) The applicant was previously the holder of an occupational
license issued by another state, authorizing the same or similar
activities of a license issued under this division; and that license
was revoked or suspended for cause and was never reissued, or was
suspended for cause, and the terms of suspension have not been
(6) The applicant or licensee has committed any act prohibited by
Section 11713.2 or 11713.3.
(c) Pending the determination of the department that the applicant
has met the requirements of this chapter, it may issue a temporary
permit to any person applying for a representative's license. The
temporary permit shall permit the operation by the representative for
a period not to exceed 120 days while the department is completing
its investigation and determination of all facts relative to the
qualifications of the applicant for a license. The temporary permit
is invalid after the applicant's license has been issued or refused.
(d) The department may issue a probationary representative's
license based upon the existence of any circumstance set forth in
subdivision (b), subject to conditions to be observed in the exercise
of the privilege granted, either upon application for the issuance
of a license or upon application for the renewal of a license. The
conditions to be attached to the exercise of the privilege shall not
appear on the face of the license but shall be those which, in the
judgment of the department, are in the public interest and suitable
to the qualifications of the applicant as disclosed by the
application and investigation by the department of the information
(a) The department, after notice and hearing, on an
interim basis, may refuse to issue or may suspend a license issued
under this chapter when the applicant or licensee has been convicted
of a crime involving moral turpitude which is substantially related
to the qualifications, functions, or duties of the licensed activity,
if an appeal of the conviction is pending or the conviction has
otherwise not become final. A conviction after a plea of nolo
contendere is a conviction within the meaning of this section.
(b) If a conviction, upon which an interim refusal to issue or
suspension under subdivision (a) is based, is affirmed on appeal or
otherwise becomes final, the refusal to issue or suspension shall
automatically take effect as a denial or revocation, as the case may
be, of the license. If the interim refusal to issue or suspension was
stayed under probationary terms and conditions, the subsequent
automatic denial or revocation shall also be stayed under the same
terms and conditions for a term not to exceed the original term of
probation for the interim refusal or suspension.
(c) If a conviction, upon which an interim refusal to issue or
suspension under subdivision (a) is based, is reversed on appeal, the
refusal or suspension shall be set aside immediately by the
(a) If the department suspends or revokes a representative's
license, the licensee shall be entitled to an appropriate hearing.
Such hearing shall be conducted pursuant to Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
(b) If the department issues or renews a representative's license
requiring conditions of probation or if the department refuses to
issue such license, the applicant shall be entitled to demand in
writing a hearing as hereinabove provided before the director or his
representative within 60 days after notice of refusal or issuance of
the probationary license.
(c) A person whose representative's license has been revoked or
whose application for a license has been denied may reapply for such
license after a period of not less than one year has elapsed from the
effective date of the decision revoking the license or denying the
application; provided, however, that if such decision was based upon
paragraph (3) or (4) of subdivision (b) of Section 11902, an earlier
reapplication may be made accompanied by evidence satisfactory to the
department that such grounds no longer exist.
(a) After the filing of an accusation under this article,
the director may enter into a stipulated compromise settlement
agreement with the consent of the licensee on terms and conditions
mutually agreeable to the director, the respondent licensee, and the
accuser without further hearing or appeal. The agreement may include,
but is not limited to, a period of probation or monetary penalties,
or both. The monetary penalty shall not exceed five hundred dollars
($500) for each violation, and it shall be based on the nature of the
violation and the effect of the violation on the purposes of this
(b) A compromise settlement agreement may be entered before,
during, or after the hearing, but is valid only if executed and filed
pursuant to subdivision (d) before the proposed decision of the
hearing officer, if any, is adopted or the case is decided.
(c) The department shall adopt, by regulation, a schedule of
maximum and minimum amounts of monetary penalties, the payment of
which may be included as a term or condition of a compromise
settlement agreement entered under subdivision (a). Any monetary
penalty included in a compromise settlement agreement shall be within
the range of monetary penalties in that schedule.
(d) Any compromise settlement agreement entered under this section
shall be signed by the director, the respondent licensee, and the
accuser, or by their authorized representatives. The director shall
file, or cause to be filed, the agreement with the Office of
Administrative Hearings, together with the department's notice of
withdrawal of the accusation or statement of issues upon which the
action was initiated.
(e) If the respondent licensee fails to perform all of the terms
and conditions of the compromise settlement agreement, the agreement
is void and the department may take any action authorized by law
notwithstanding the agreement, including, but not limited to,
refiling the accusation or imposing license sanctions.
Every representative's license issued hereunder shall expire
at midnight on the 30th day of June of each year.
Every application for the renewal of a representative's
license which expires on the 30th day of June shall be made by the
person to whom issued between June 1st and midnight of June 30th
preceding such expiration date and shall be made by presenting the
application form provided by the department and by payment of the
full annual renewal fee for such license.
The representative's license, or any permit provided for in
this chapter, shall be automatically canceled upon the failure of the
licensee to file an application for renewal of the license or permit
before July 1st following the expiration date of the current license
The suspension, expiration, or cancellation of the
representative's license provided for in this chapter shall not
prevent the filing of an accusation for revocation or suspension of
the suspended, expired, or canceled license as provided in Section
11903, and the department's decision that such license should be
suspended or revoked. Such determination may be considered in
granting or refusing to grant any subsequent license authorized by
Division 5 (commencing with Section 11100) to such licensee.
Upon issuance by the department to the licensee, the license
provided in this article shall be immediately delivered to and
posted in a place conspicuous to the public at the place of business
of the manufacturer, manufacturer's branch, distributor, distributor'
s branch from which the representative is directly supervised and
shall be continuously exhibited in such place while the
representative is employed by such employer.
In the event a representative's employment is terminated, the
license shall be forwarded to the department by the manufacturer,
manufacturer's branch, distributor, distributor's branch not later
than the end of the third business day after termination.