California Code of Regulations
Title 13 - Motor Vehicles
Division 1 - Department of Motor Vehicles
Chapter 1 - Department of Motor Vehicles
Article 3.6 - Vehicle Industry and Business Enterprises
Section 225.38 - First-Line Business Partner and First-Line Service Provider Obligations

Universal Citation: 13 CA Code of Regs 225.38

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) A first-line business partner or first-line service provider shall hold the State of California and any political subdivision thereof or any of its officers, agents, or employees harmless for monetary losses caused by the first-line business partner's or first-line service provider's and/or that provider's second-line business partner's misuse of the information obtained from the department or obtained from customers for transactions processed by the first-line business partner or first-line service provider and secured under the bond required by Section 225.09.

(b) A first-line business partner or first-line service provider shall pay to the department monies collected by the first-line business partner or first-line service provider and due to the department, including any transaction fee imposed in regulation or statute by the State under Vehicle Code section 1685.

(c) A first-line business partner or first-line service provider shall reimburse the State of California, or any political subdivision thereof, for any loss or damage that the State of California, or any political subdivision thereof, may suffer by reason of any act of the first-line business partner or first-line service provider, its agents or employees or that provider's second-line business partners arising out of or related to the first-line business partner's or first-line service provider's duties, functions or obligations as a first-line business partneror first-line service provider, in any amount up to the maximum amount secured under the bond required by Section 225.09, when any of the following conditions occur:

(1) Information obtained from the department or customers by false or misleading representations while performing the duties, functions and obligations of a first-line business partner or first-line service provider and/or that provider's second-line business partner.

(2) Information obtained from the department and customers and used for any purpose other than specified in the regulations or first-line business partner or first-line service provider BPA contract.

(3) Any other act resulting in monetary losses being suffered by the State of California, any political subdivision of the State of California, or any of its officers, agents or employees arising out of or related to the duties, functions and obligations of a first-line business partner or first-line service provider and/or a provider's second-line business partner.

1. New section filed 5-22-2009; operative 6-21-2009 (Register 2009, No. 21).
2. Amendment of section heading and section filed 6-29-2012; operative 7-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 26).

Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.

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