Hollister Municipal Code Ch. 5.40 Used Car Dealers

No person shall engage in the business of buying for resale, selling, offering to sell, exchanging, consigning to be sold or otherwise dealing in secondhand or used automobiles in the city in violation of any of the provisions of this chapter.

(Prior code § 21-1)

Before engaging in the business referred to in Section 5.40.010, every person desiring to engage in such business shall secure a license, in writing, from the city council.

(Prior code § 21-2)

Before receiving or acting upon an application for a license required by Section 5.40.020, the city council shall require the following:

A. The payment in advance of the sum of $200.00 as a fee for the current calendar year;

B. The filing of a bond executed in favor of the city by a surety corporation duly authorized to do so, or by two personal sureties, such bond to be approved by the city council. Such bond shall be joint and several and the penalty thereof shall be $2,500.00, and shall be conditioned to be paid to the city and any person insuring against any loss or damage that may result to any person from any transaction involving a used motor vehicle, either through failure to deliver a clear title to any person legally entitled thereto within 21 days after final payment has been made or through misrepresentation of any material matter in connection with such a transaction. Such bond may be sued upon from time to time until the whole penalty has been exhausted. Such bond may, by its terms, be effective from year to year, so long as the license may remain effective, or it may be for a current year, and if for the latter period, a new bond shall be filed before a renewal of the license shall be granted;

C. An affidavit, signed by the applicant, showing that the applicant is to conduct his or her business at a fixed place where used automobiles are or will be displayed for sale and giving the address of such place of business. Such affidavit shall also state that the applicant is a registered dealer under the laws of the state, and shall state the dealer's number issued by the state.

(Prior code § 21-3)

Upon the receipt of an application for a license under this chapter, the city council shall cause an investigation to be made of the previous record of the applicant, together with the applicant's character, general reputation and business conduct and the location at which such applicant is doing or proposes to do business, as specified in the application. The city council shall use reasonable and sound discretion, and, if satisfied after such investigation, may issue a license to the applicant.

In the event any application is rejected, the bond and the fee required in Section 5.40.030 shall be returned.

(Prior code § 21-4)

All licenses issued under this chapter shall be effective for the balance of the year in which issued unless revoked for cause as provided in this chapter. A license, once issued, may be renewed from year to year upon payment of an annual fee of $30.00.

(Prior code § 21-5)

No license granted under this chapter may be transferred to any other person.

(Prior code § 21-6)

In the event any licensee under this chapter should cease to carry on his or her used car business for a period of 90 days from the location mentioned in the license, the license shall automatically terminate. Such licensee shall, in order to secure a license to conduct business again, make application and secure a license in the manner required by this chapter.

(Prior code § 21-7)

If any licensee under this chapter conducts his or her business in such a manner as to violate any of the provisions of this chapter or any of the laws of the state, the city council shall have the power, in addition to invoking any penal provisions of existing laws or ordinances, to suspend or revoke any license granted under this chapter, after giving due notice to the licensee of its intention to do so and affording the licensee an opportunity to be heard.

(Prior code § 21-8)

A. Every licensee under this chapter shall keep a record showing the following information:

1. The name and address of the former owner of each used automobile handled by the licensee in the city;

2. The date of purchase from the former owner;

3. The state registration number, serial number and engine number;

4. The make of car, year of manufacture, body style and seating capacity;

5. The date of sale or exchange and the name and address of the purchaser of such vehicle.

B. Such record shall at all times be open to the police officers of the city or any other peace officer.

(Prior code § 21-9)

No person, other than the licensee, may transact a business in used automobiles from the location occupied by the licensee unless such person also holds a license under this chapter.

(Prior code § 21-10)