SEC. 7. Section 4456 of the Vehicle Code is amended to read:
SEC. 8. Section 4456 is added to the Vehicle Code, to read:
4456. (a) When selling a vehicle, dealers and lessor-retailers
shall use numbered report-of-sale forms issued by the department. The
forms shall be used in accordance with the following terms and
conditions:
(1) The dealer or lessor-retailer shall attach for display a copy
of the report of sale on the vehicle before the vehicle is delivered
to the purchaser.
(2) The dealer or lessor-retailer shall submit to the department
an application accompanied by all fees and penalties due for
registration or transfer of registration of the vehicle within 30
days from the date of sale, as provided in subdivision (c) of Section
9553, if the vehicle is a used vehicle, and 20 days if the vehicle
is a new vehicle. Penalties due for noncompliance with this paragraph
shall be paid by the dealer or lessor-retailer. The dealer or
lessor-retailer shall not charge the purchaser for the penalties.
(3) As part of an application to transfer registration of a used
vehicle, the dealer or lessor-retailer shall include all of the
following information on the certificate of title, application for a
duplicate certificate of title, or form prescribed by the department:

(A) Date of sale and report of sale number.
(B) Purchaser’s name and address.
(C) Dealer’s name, address, number, and signature or signature of
authorized agent.
(D) Salesperson number.
(4) If the department returns an application and the application
was first received by the department within 30 days of the date of
sale of the vehicle if the vehicle is a used vehicle, and 20 days if
the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days from
the date of sale of the vehicle if the vehicle is a used vehicle, and
40 days if the vehicle is a new vehicle, or within 30 days from the
date that the application is first returned by the department if the
vehicle is a used vehicle, and 20 days if the vehicle is a new
vehicle, whichever is later.
(5) If the department returns an application and the application
was first received by the department more than 30 days from the date
of sale of the vehicle if the vehicle is a used vehicle, and 20 days
if the vehicle is a new vehicle, the dealer or lessor-retailer shall
submit a corrected application to the department within 50 days from
the date of sale of the vehicle if the vehicle is a used vehicle, and
40 days if the vehicle is a new vehicle.
(6) An application first received by the department more than 50
days from the date of sale of the vehicle if the vehicle is a used
vehicle, and 40 days if the vehicle is a new vehicle, is subject to
the penalties specified in subdivisions (a) and (b) of Section
4456.1.
(7) The dealer or lessor-retailer shall report the sale pursuant
to Section 5901.
(b) (1) A transfer that takes place through a dealer conducting a
wholesale vehicle auction shall be reported to the department by that
dealer on a single form approved by the department. The completed
form shall contain, at a minimum, all of the following information:
(A) The name and address of the seller.
(B) The seller’s dealer number, if applicable.
(C) The date of delivery to the dealer conducting the auction.
(D) The actual mileage of the vehicle as indicated by the vehicle’
s odometer at the time of delivery to the dealer conducting the
auction.
(E) The name, address, and occupational license number of the
dealer conducting the auction.
(F) The name, address, and occupational license number of the
buyer.
(G) The signature of the dealer conducting the auction.
(2) Submission of the completed form specified in paragraph (1) to
the department shall fully satisfy the requirements of subdivision
(a) and subdivision (a) of Section 5901 with respect to the dealer
selling at auction and the dealer conducting the auction.
(3) The single form required by this subdivision does not relieve
a dealer of any obligation or responsibility that is required by any
other provision of law.
(c) A vehicle displaying a copy of the report of sale may be
operated without license plates or registration card until either of
the following, whichever occurs first:
(1) The license plates and registration card are received by the
purchaser.
(2) A six-month period, commencing with the date of sale of the
(2) A 90-day period, commencing with the date of sale of the
vehicle, has expired.
(d) This section shall become inoperative on July 1, 2012, and, as
of January 1, 2013, is repealed, unless a later enacted statute that
is enacted before January 1, 2013, deletes or extends the dates on
which it becomes inoperative and is repealed.
(d) This section shall become operative on July 1, 2012.