Recent Rule & Regulation Changes

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DMV News

General Updates;

8/29/2022)

The New York Times California Today; What to know about the ban on new gasoline-powered cars.

“By 2035, California shoppers looking for new cars will have to buy electric […] California made history late last week when its regulators approved an ambitious plan to phase out the sale of new gasoline-powered vehicles in the state.”


6/2022 From the DMV:

“New online services coming this fall!

This fall, the California Department of Motor Vehicles (DMV) will launch new online services that will allow Occupational Licensing (OL) customers to electronically apply for and manage their licenses. Once launched, this new system will streamline the way you do business with the department. These changes aim to replace aging systems and provide a single, user-friendly online portal.

Starting in October, OL customers will have online access to:

*         Apply for new licenses
*         Renew or modify an active license
*         Pay fees associated with their license or application
*         Print new or renewed licenses from home

Electronic notifications will keep users up to date on the status of their application and prompt them with any additional steps required to apply for or renew their license. Going paperless will eliminate mail delays and cut down on the processing time between application and issuance.

Support and assistance for users
We want to make sure our customers have access to help and support they need to use the system. Users will have step-by-step guides available at launch; additionally, customer service staff will be standing by to assist when needed. Shortly after launch, we will also have helpful videos to walk users through key functions in the new portal.”


Future Dealers, Pre-Licensing Students, Current Applicants:

8/30/2022) Revised Occupational Licensing (OL) Forms

OL forms have been revised and will be available in electronic format through the Digital Experience Platform (DXP) DMV Documentation

♦ 2022 Update) Starting February 28th, 2022 Scheduling Inspections will now be done online

Release 1 will affect all license and program types that require a site inspection prior to issuing an original license or program certification. New applicants will be required to create a DMV account and schedule their site inspection using a new online portal. DMV Documentation

Auto Broker Endorsement – now an add on for Retail licenses only.

Form OL 902 – this form is no longer required in your application packet.


Currently Licensed Dealers:

1/2022) New Policy: TOPs will not be issued to extend the operational period of a report of sale (ROS) and/or temporary license plates (TLP) beyond the 90-day period allowed by statute DMV Documentation

When a vehicle is purchased through a dealer, the dealer is required to submit an electronic ROS to the Department of Motor Vehicles (DMV) within five days after the date of sale.
Dealers must then submit a corresponding application to DMV with all fees due:
• For used vehicles, within 30 days of the date of sale.
• For new vehicles, within 20 days of the date of sale.

 

1/2022) Miscellaneous Fee Increases DMV Documentation

Including but not limited to an increase in Registration fees from $61 to $62, full list of increased fees detailed on documentation linked above.

& County Fee Changes DMV Documentation

Orange County (county code [CC] 30), Contra Costa County (CC 07) and Riverside County (CC 33)

 

9/17/2021) Consumer Motor Vehicle Recovery Fund DMV Documentation

“Beginning October 1, 2021, the Department of Motor Vehicles (DMV) will resume collection of a $1 fee for each vehicle sold by a dealer or lessor-retailer. ” 

 

1/1/2021) Sales Tax due to DMV at time of transfer DMV Documentation

Effective January 1, 2021, vehicle dealers licensed to sell used vehicles are required to remit to the Department of Motor Vehicles (DMV) any sales tax due on the sale of a vehicle at the time the dealer submits the vehicle transfer/registration application to DMV.

Dealers will no longer send sales tax to the Department of Tax & Fee Administration (CDTFA). 

“Based on proposed regulations, DMV will implement the new sales tax payment method requirement in phases. On January 1, 2021, the requirement will be imposed on used vehicle dealers who:
• Were licensed by DMV in the last 2 years.
• Had a finding of underreporting by the California Department of Tax and Fee
Administration (CDTFA) in the last 2 years.
• Reinstated their seller’s permit in the last 2 years.
• Are not in the Business Partner Automation Program.

NOTE: By January 1, 2023, all used vehicle dealers licensed to sell used vehicles will be subject to the new requirement.”
* Don’t pay sales tax to the DMV until they have notified you that your payment method has changed. If DMV has not notified you, continue to pay sales tax to CDTFA. If you are unsure of your status – to verify whether you are required to pay sales tax to the DMV (or to confirm receipt of tax payment to DMV) email DMVTAXINQ@dmv.ca.gov *

 

3/19/20) Online Vehicle Sales and Off Site Delivery DMV Documentation

Due to the COVID-19 outbreak, a Proclamation of a State of Emergency was issued by California Governor Gavin Newsom. On March 19, 2020, Executive Order N-33-20 was issued which exempted from the stay at home order “essential critical infrastructure workers” needed to maintain continuity of essential critical infrastructure designated by the State Public Health Officer. On April 28, 2020, in accordance with the Order, the State Public Health Officer designated workers critical to the manufacturing, distribution and sales of vehicles as essential critical infrastructure workers, subject to adhering to the public health guidelines issued by the California Department of Public Health (CDPH). This memorandum clarifies the requirements for online vehicles sales and off-site delivery of a vehicle to a purchaser during this outbreak period. 

 

12/30/19) 2020 Miscellaneous Fee Increases DMV Documentation

Effective January 1, 2020, two occupational licensing-related fees will increase. These fees affect occupational licensees with identification license plates such as dealers, manufacturers, dismantlers, distributors, remanufacturers, and vehicle transporters.

-The cost to buy a dealer plate is $87.00 per plate. The current dealer license application form says “$71.00” That is incorrect. It is $87.00.
-The “registration fee” (to keep your dealer plate active) increased by $2.00 and is now $59.00.  

 

11/22/19) Revised Report of Sale Forms DMV Documentation

 

Changes in vehicle registration fees for 2020 DMV Documentation

 

Temporary License Plates (TLP) Problems:

Some dealers have been improperly attaching TLP’s to vehicles. This is causing the TLP to swing around, making them difficult to read, and causing them to tear and fall off. Other dealers have been using incorrect TLP paper, causing additional TLP failures. These situations have resulted in lost revenue from bridge tolls, as well as traffic citations for the new owners of the vehicles.

Solution 1: Proper TLP paper material must be used. It can be obtained from one of the authorized TLP providers. Below is the list of DMV approved providers:

Fairfax Imaging: fairfaxsoftware.com
American Driving Records:  caevrreg.com
Automated Vehicle Registration Services: avrs.com/temptags
Dealertrack: go.dealertrack.com/catemptags
Motor Vehicle Software: dmvdesk.com 

Solution 2: TLP must be securely attached to the vehicle. To be securely attached, DMV requires dealers to attach the TLPs to the vehicle using all four perforations in the corners of the TLP paper. If a vehicle does not have four points of attachment, then the dealer must attach the TLPs in a manner that will prevent the TLP from swinging and flapping. 

 

1/1/2019) Assembly Bill 516

Effective 1/1/2019 ; requires dealers to prepare Reports of Sales electronically (on line) and to print Temporary License Plates when vehicles are sold.

DMV will not longer accept the hard copies of the Reports of Sale issued by DMV to dealer prior to 2019.

DMV will also not allow dealer promotional paper plates to be placed on vehicles at the time of sale. Instead, the new Temporary License Plates must be placed on the vehicle. The processing of the Reports of Sale electronically, and the printing of the Temporary License Plates can be done either through the Business Partner Automation Program, or through Fairfax Imaging. Both procedures are described below:

Business Partner Automation Program

Dealers can process their vehicle licensing and registration paperwork electronically using DMV’s Business Partner Automation Program. When using a Business Partner Automation Program dealers will complete the entire transaction online, but will still need to send hard copies of the old title to the DMV. This can be done at the moment of sale, avoiding most paperwork, missed time deadlines, and storage of old documents. The following are the four DMV-approved Business Partner providers:

DEALERTRACK Contact: Chris Triana – Phone: 860-235-4725 (you can also request a demo on their website)
MOTOR VEHICLE SOFTWARE CORPORATION Contact: Eddy Partida – Phone: 818-706-1949
AUTOMATED VEHICLE REGISTRATION SERVICES Contact: Mark Kithcart – Phone: 707-790-8504
AMERICAN DRIVING RECORDS Contact: Scott Faulds – Phone: 916-288-6616 

Fairfax Imaging

Fairfax Imaging has been approved by DMV to implement the electronic Report of Sale and Temporary License Plate processes for dealers who are not part of the BPA program discussed above. When using Fairfax, the ROS will be automatically uploaded, then dealers will have 30 days to print out and physically mail ALL the transfer documents into DMV.

Fairfax describes their process as follows:  “The Report of Sale will be printed at the end of each transaction. The registration procedures that dealers currently follow will not change. With this system, dealers will print out the Report of Sale forms using a local computer and printer and process registration of vehicles sold in the same manner as currently processed, by utilizing a First Line Business Provider, through DMV Industry Business Centers (IBCs), a registration service or by mail to the department.” 

This means that instead of DMV providing dealers with hard copies of Report of Sale Forms, dealers will print their own using the Fairfax system. With this system DMV will have the Report of Sale information as soon as the dealer puts inputs it into the Fairfax system. The dealer can then print out the completed Report of Sale, and will still have up to 30 days to send the hard copy application to DMV as they have in the past. Fairfax will also provide dealers the capability to print Temporary License Plates (“TLP”). These paper plates will have the Report or Sale numbers printed on the plates, so the plates match up to the Reports of Sale. The thinking is that these temporary plates will make the vehicles less desirable objects for theft. Fairfax calls their system “Quick Tags.” 

Fairfax conducts training sessions in person or online, and can be contacted at: fairfaximaging.com

Making A Sale With Fairfax:

Using Fairfax, submit your Report of Sale electronically as soon as the sale is made.

Then – print and submit to the DMV:

Report of Sale / Title / REG 262 (bill of sale) from your dealership to the new owner

A check to cover the:

Transfer fee of $15.00 / the vehicle license fee (.65% of the selling price) / the registration fee if it has expired, or will expire within 30 days of the sale date. You can get the fee, if due, from the DMV’s registration calculator on their website.

Your buyer will receive the “operating copy” of the Report of Sale, which you will attach to the lower right hand corner of the windshield (it is like a temporary registration until they get their official title and registration from DMV). The operating copy is is the small form that is attached to the Report of Sale. Remove it from the Report of Sale main form at tape it to the windshield.