AB 3

This bill changes the procedures for denials and suspensions and revocations

of certain licenses issued to manufacturers, importers, distributors, or dealers of

motor vehicles.

Under current law, a manufacturer, importer, distributor, or dealer of motor

vehicles that wishes to sell motor vehicles in this state must be licensed by the

Department of Transportation. Currently, DOT may deny an application for a

license by providing to the applicant a written notice that states the grounds for the

denial. Within 30 days after receiving the notice, the applicant may petition the

Division of Hearings and Appeals for review of the denial. Also under current law,

for a variety of reasons enumerated in existing law, DOT may seek suspension or

revocation of a license. The procedure for a suspension or revocation hearing is the

following, in general: 1) DOT provides the licensee with notice of the time and place

of the hearing at least five days before the hearing; 2) a hearing is conducted before

DHA; and 3) DHA issues an order suspending or revoking a license, which may take

effect ten days after notice of the suspension or revocation is provided to the licensee.

An exception to this procedure allows DOT to expedite a hearing if, in DOT's opinion,

the best interest of the public or the trade demands it. Under this exception, DOT

must provide at least 24 hours' notice before the hearing and the suspension may

take effect 24 hours after notice of the suspension is provided to the licensee.

This bill changes licensing and suspension and revocation procedures in

several respects. First, under this bill, for license denials and license suspensions

and revocations, DOT is responsible for the initial determination, and a licensee may

appeal the determination to DHA. Second, this bill provides that, in certain cases,

a suspension or revocation of a license may take effect immediately. Specifically, a

license suspension or revocation takes effect immediately if DOT determines that

immediate suspension or revocation is appropriate and alleges any of the following:

1) a license violation in the course of a consignment sale; 2) a sale of a motor vehicle

without a dealer license; or 3) intentionally fraudulent conduct related to certificates

of title, mileage disclosure, or use of personal identifying information.